Personal Asset: Cell Phone

Personal asset: cell phone

1. How would you determine this value?

To determine the sale value of my personal asset, I have to consider historical price of that asset. So, the sale value of my cell phone is 16,000 BDT considering. Another factor is net realizable value which determined by buyers willingness.

2. What is the resale value?

Resale value means the value at which I want to resale my cell phone. We have to consider net realizable value to determine resale value. Again, if there is any agent cost like commission, discount and so on. We have to deduct it from net realizable value and determine resale value. Suppose, sale value of my cell phone is 16,000 BDT and agent commission is 10% which 1,600 BDT. So, resale value will be (16,000-1,600) = 14,400 BDT.

3. What is the replacement value?

To determine replacement value, I have to take total cost involved in replacing items with new items. The value may be less than, equal or more than the purchased price depending on whether the item has appreciated or depreciated. The cell phone has depreciated in value. So, if I want to replace my cell with same items, the replacement value will be less than purchased price which could be 15,000BDT.

4. What is the fair value?

The price at which purchaser is interested to purchase my cell phone and I'm interested to sell my cell phone is the fair price. If I want to sell at 15,000 BDT and buyers are willing to pay 15,000 BDT. Then 15,000 BDT is the fair price of my cell phone.

5. What is the market value?

Market value refers to the price that a seller of cell phone can expect to receive from a buyer in a fair and open negotiation. If the current selling price is 14,800 BDT of my cell phone, then this is the market value of my cell phone.

6. How much are you willing to sale it for?

Determined sales value = 16,000 BDT

Resale value = 14,400 BDT

Fair value = 15,000 BDT

Market value = 14,800 BDT

The minimum price is 14.400 BDT. If any one asked below this price, I will not sell my cell phone.

7. Are all these prices the same? Why/why not?

All the prices are not same because different determinants are used to fix different values. To determine sale values, I consider historical cost of my cell phone whereas to determine resale value. We consider commission to get exact resale value. Again, when we determine replacement cost, we consider