On the Lvov formula for machinery and equipment valuation

One of the methods of valuation of machines and equipment is the method of equally effective functional analogue, based on the formula of D.S. Lvov. The author proposes a different approach to substantiating this method, since its use does not adequately take into account the particularities of the use of machines. The proposed method allows to modify Lvov’s formula, reflecting the dynamics of physical wear of machines and the risk of possible accidents, which contributes to improving the quality of valuation.