SPI Service Potential Index
The SPI or Service Potential Index, is now the primary condition driver for valuations, breaking the link with engineering conditions.
Key Features
- It is a numeric index with user-specified range (for example, 1-5, where 1=Excellent Condition)
- It will interpolate between two points i.e. 2.43 would return a WDV of 74.25%
Example of interpolation
2.43 would return a WDV of 74.25%
Below is an example of SPI configuration.
Below chart illustrates several common valuation patterns.
Y-axis represents Written Down Value Percentage.
X-axis represents Estimated Useful Life Percentage.
