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Engineering Economics2D

Depreciation - Theory & Concepts

Methods of depreciation including Straight Line, Declining Balance, SYD, MACRS, and Depletion.

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Depreciation Methods Comparison

First Cost (P)10,000 $

Initial cost of the asset including installation.

Salvage Value (SV)1,000 $

Estimated value at the end of useful life.

Useful Life (n)5 years

Formula & Details

Straight Line depreciates uniformly.

Dt=PSVnD_t = \frac{P - SV}{n}

Book Value & Depreciation Schedule

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