Annual depreciation=60000/6=10000, tax saving amount=10000*25=2500 Since the annual cost saving is 2000, the annual cash reduction in cash expenditure=20000*75 2500=17500 The present value of this plan =-60000 17500* (P/A, 12, 6) =-60000 17500*4.111=11942.5, you can invest.
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The Straight Line Method, also known as the average life method, refers to the average depreciation calculation of fixed assets based on their expected useful life and evenly allocates them to each period. a method. The depreciation amount calculated in each period (year, month) using this method is equal.
What is fixed asset depreciation?
Fixed-assets Depreciation Method refers to the part of the value of fixed assets that is gradually transferred to costs and expenses due to wear and tear during use. The accrued depreciation is calculated according to a determined method. The amount is allocated to the system. Determining the depreciation range of fixed assets is the prerequisite for calculating depreciation. Fixed asset losses are generally divided into two types: tangible losses and intangible losses. Depreciation methods: straight-line method, average life method, sum of years' digits method, double declining balance method, workload method, etc.
Straight Line Method:
The Straight Line Method is also known as the average life method, which refers to the average depreciation of fixed assets based on their estimated useful lives and evenly distributed to One method for each period. The depreciation amount calculated in each period (year, month) using this method is equal. Therefore, when the use of assets is the same in each year, it is more appropriate to use the straight-line method. Four factors affect the straight-line method: the original value of the fixed assets, the expected service life, the residual value income obtained when the fixed assets are scrapped and cleaned up, and the various cleaning expenses paid.
Income from the residual value of fixed assets: refers to the income from the revaluation of residual materials or parts left after the liquidation of fixed assets. Fixed assets cleaning costs: refers to the costs incurred when cleaning fixed assets. The net residual value of fixed assets after deducting cleaning expenses is the net residual value of fixed assets. In actual work, in order to reflect the degree of wear and tear of fixed assets within a certain period of time and facilitate the calculation of depreciation, the monthly depreciation amount is generally calculated based on the original value of the fixed asset multiplied by the monthly depreciation rate.
Three calculation formulas for the straight-line method:
Depreciation amount of fixed assets = (Original value of fixed assets - Estimated net residual value) ÷ Estimated useful life of fixed assets_Monthly depreciation of fixed assets Rate = depreciation amount of fixed assets ÷ 12 2) Annual depreciation rate of fixed assets = Annual depreciation amount of fixed assets ÷ Original value of fixed assets * 100_ Monthly depreciation rate of fixed assets = Annual depreciation rate of fixed assets ÷ 12 3) Annual depreciation rate of fixed assets = ( 1-Estimated net salvage value rate)÷Estimated service life of fixed assets*100_ Monthly depreciation rate of fixed assets = Annual depreciation rate of fixed assets÷12