Depreciation treatment in Engineering Economics

The following discussion agenda is on Depreciation treatement in Engineering Economics:

1. An introduction to Depreciation
• Causes of declining value
• Physical depreciation
• Functional depreciation
• Technological depreciation
• sudden failures
• Depletion
2. Depreciation in Accounting
• Requirements for a property to be depreciable
3. Modified Acceleratted Cost Recovery System
4. Basic methods of calculating depreciation charges
• Straight-line method
• Declining-balanced method
• Double-declining-balance depreciation
• Switch from double-declining balance to straight-line depreciation
5. Evaluation of depreciation methods
• After-tax effect of depreciation methods

Some related lecture notes:

References

1. Riggs, J.L., Bedworth, D.D. and Randhawa, S.U. (1998) "Chapter 9: Depeciation and Income Tax Considerations" in Engineering Economics, McGraw-Hill
2. Depreciation video (straight line method): http://www.youtube.com/watch?v=c_B0NEHahhQ&feature=relmfu
3. Depreciation video (units of production method): http://www.youtube.com/watch?v=yg5CULLqtPg&feature=relmfu
4. Depeciation video (declining balance method): http://www.youtube.com/watch?v=W24_dVanprY&feature=relmfu