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  1. 373 Posts.
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    I'm addressing your "guess" of 3.5 year depreciation, surely it is at least 5 years. Depreciation is supposed to take into account the typical life of the item. We are very used to things being depreciated more quickly than they actually last (which is fine), but 3 or 3.5 years is too short to be believable.

    Yes I understand that it is purely an accounting measure, it doesn't change cash flow, effectiveness of the machine, or even the long term profitability of the machine - it only changes whether profit is realized sooner or later.


 
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