1. The equipment has no special end-of-life requirements, for example, what circumstances can not be continued to be used
2. The equipment is depreciated on a straight-line basis
Taxation law stipulates that the useful life of machinery and equipment is 10 years, and the company may, depending on the circumstances, extend or shorten the useful life. The company may extend or shorten the useful life depending on the situation. The accumulated depreciation of the equipment is the cost recovery amount of the equipment.
From a payback perspective, the payback period is the amount of the investment in the equipment divided by the annual cash flow (revenue) generated by the equipment.