Tag Archives: Depreciation

How to Model Depreciation

Completing the OFFSET series, let’s see a real-life example on how to use the OFFSET function to model depreciation.

Basically, the depreciation model needs the following inputs:

  • Monthly capital expenditures forecast
  • Useful life of the assets

With those inputs we’ll be able to calculate:

  • Monthly depreciation
  • Accumulated CAPEX
  • Accumulated depreciation
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