Is Your Landfill or Other Wasting Asset Fairly Assessed?On March 11, 2015 by Schnader
Some assets, such as houses, art and collectibles, and investments appreciate in value over time; others, such as landfills, are considered “wasting assets,” as they have a finite life and little or no capital value at the end of that life. In fact, a landfill is more of a liability than an asset at the end of its useful life due to the 30-year post-closure monitoring requirements applicable under environmental laws. As an investment, a landfill is high risk due in part to the potential for extreme environmental liabilities. Conventional appraisal methods including cost, comparable sales, and even the traditional income method, do not account fully for these unique factors.
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