It’s five years later and you have replaced your fleet. Now you need to depreciate it for your records. You choose to use declining balance depreciation and assume a 4 year lifespan and a 135% depreciation rate.

Your Excel file should depict the following:

Why might this choice be better than straight line depreciation in this particular situation?

Create a Depreciation Table (similar to Table 7.6 in your Brayley & McLean text) that depicts Period, Starting Book Value, Depreciation Amount, and Remaining Book Value.

Your table should use formulas (multiplication, division, subtraction) that link the cells together so when I make a change to your Starting Book Value in Year 1, I should see changes throughout the entire table.