CAPEX Part 2
When to use
When constructing a basic financial model.
The first step in building the depreciation is to work out the annual depreciation rate in the Assumptions tab.
- To work out the depreciation on existing assets the calculation will be the existing assets amount x depreciation rate =I175*I181
- To work out the depreciation on the new assets the calculation will be the capital expenditure amount x depreciation rate =J176*$I$184
- The aggregate depreciation on the existing and new assets can then be calculated which will be transferred into the Financial Statements
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