Engineering Economic Analysis - 8th Edition工程经济分析解析-第八版.ppt

《Engineering Economic Analysis - 8th Edition工程经济分析解析-第八版.ppt》由会员上传分享，免费在线阅读，更多相关内容在行业资料-天天文库。

1、Chapter10-DepreciationClickhereforStreamingAudioToAccompanyPresentation(optional)EGR403CapitalAllocationTheoryDr.PhillipR.RosenkrantzIndustrial&ManufacturingEngineeringDepartmentCalPolyPomonaEGR403-TheBigPictureFramework:Accounting&BreakevenAnalysis“Time-valueofmoney”

2、concepts-Ch.3,4AnalysismethodsCh.5-PresentWorthCh.6-AnnualWorthCh.7,7A,8-RateofReturn(incrementalanalysis)Ch.9-BenefitCostRatio&othermethodsRefiningtheanalysisCh.10,11-Depreciation&TaxesCh.12-ReplacementAnalysis2EGR403-CalPolyPomona-SA13BasicAspectsofDepreciationAnimp

3、ortantcomponentincomputingincometaxes.Fortaxpurposes:Depreciationisthesystematicallocationofthecostofanassetspreadoveritsdepreciablelife.3EGR403-CalPolyPomona-SA13DepreciationDefinition-Adecreaseinvalue.InaneconomiccontextMarketvalueValuetotheownerInanaccountingcontex

4、tasystematicallocationofthecostofanassetoveritsdepreciablelife.DepreciablelifeisrelatedtoDeteriorationObsolescence4EGR403-CalPolyPomona-SA13DepreciationandExpensesExpenses-subtractedfrombusinessrevenuesastheyoccur(timeframe

5、c.Depreciation-subtractedfrombusinessexpensesovertimeastheassetisusedup(appliestoassetswith>1yearusefullife).MachineryInstallationcosts5EGR403-CalPolyPomona-SA13DepreciationforTaxPurposesDepreciablelife-theperiodoverwhichanassetisdepreciated(recoveryperiod).Depreciati

6、onisanon-cashcost-moneydoesnotchangehandsduringtherecoveryperiod.(Note:Theassetisalreadypaidforormoneyhasbeenborrowedandprincipal&interestpaymentsarebeingmade.)Depreciationisusedtoallocateanasset’slossofvalueovertime.Depreciationisdeductedfromrevenueandreducesthetaxab

7、leincomeofabusinessovertimewhichproducesacashflowonanaftertax-basis.6EGR403-CalPolyPomona-SA13APropertyisDepreciableIfThepropertyisusedforbusinesspurposesintheproductionofincome.Thepropertyhasausefullifethatcanbedetermined,andtheusefullifeislongerthanoneyear.Theproper

8、tydecays,getsusedup,wearsout,becomesobsoleteorlosesvaluefromnaturalcauses.7EGR403-CalPolyPomona-SA13ClassificationofProperty