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<!-- / post 2145468 popup menu --> <!-- / close content container --> <!-- / post #2145468 --> <!-- start content table --> <!-- open content container --> <!-- / start content table --> <!-- controls below postbits --> i have to find the depreciation value for a particular project, in order to find the NPV.
The depreciation method to be used is 'sum of digits method'
Life of the project= 5
Cost of investment is = USD 100, 000
Depreciation for 5 years using IF function?
NOTE: FOR THOSE WHO DOSENT KNOW WHAT 'SUM OF DIGITS' method is.
Year 0 1 2 3 4 5
sum 5 4 3 2 1 0 = 15
thus, year 01 depreciation= (100,000/15)* 5
year 02 = (100,000/15)*4
Logic: Higher depreciation is allocated to the first few years.
<!-- / post 2145468 popup menu --> <!-- / close content container --> <!-- / post #2145468 --> <!-- start content table --> <!-- open content container --> <!-- / start content table --> <!-- controls below postbits --> i have to find the depreciation value for a particular project, in order to find the NPV.
The depreciation method to be used is 'sum of digits method'
Life of the project= 5
Cost of investment is = USD 100, 000
Depreciation for 5 years using IF function?
NOTE: FOR THOSE WHO DOSENT KNOW WHAT 'SUM OF DIGITS' method is.
Year 0 1 2 3 4 5
sum 5 4 3 2 1 0 = 15
thus, year 01 depreciation= (100,000/15)* 5
year 02 = (100,000/15)*4
Logic: Higher depreciation is allocated to the first few years.