Abiblo Finance - Capitalized Value
Capitalized values is the value of the asset which has been recorded in the balance sheet of the company or other forms of organisation usually before the deduction of depreciation.
Capitalized value also means the capital equivalent of the asset where the regular income is yielded, by calculating at the prevailing interest rates.
For instance, a building may bring an annual income of 10000 pound sterling and the prevailing interest rates is 10 %. The national capitalized value will be 100 000 pound sterling which not reflect the true value.
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