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A COLA automatically raises the wage when the CPI rises.
Book Value
The net value of a company's assets found on the balance sheet, calculated as total assets minus intangible assets (patents, copyrights) and liabilities.
Residual Value
The estimated amount that an asset is worth at the end of its useful life.
Annual Depreciation Expense
Annual depreciation expense is the portion of the cost of a fixed asset that is expensed each year over its useful life, reflecting its decrease in value.
Straight-Line Depreciation
A method of allocating the cost of an asset evenly over its useful life, indicating how much of the asset's value has been used up each year.
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