Which of the following is NOT classified as a type of premise of value for tangible assets?

The premise of value is a foundational concept in business valuation that defines the basis on which assets are valued. When evaluating tangible assets, common premises of value include fair market value, replacement cost new, and orderly liquidation value. Each of these premises provides a framework for determining how much an asset is worth under specific circumstances.

Replacement cost new reflects the amount it would take to replace an asset with a new equivalent, providing insight into the current cost of obtaining a similar asset. Fair market value represents the price at which the asset would trade in an open and unrestricted market, assuming both buyer and seller are knowledgeable and not under duress. Orderly liquidation value pertains to the estimated amount that would be received if an asset were sold in a liquidation scenario, where the sale is conducted in a systematic manner over a reasonable period.

In contrast, frequency of use does not constitute a premise of value. Instead, it refers to how often an asset is utilized or engaged in operations, which can affect its wear and performance but does not itself establish a valuation methodology. Thus, selecting this option as the one that is not classified as a type of premise of value for tangible assets is accurate.