From the course: Excel: Financial Functions in Depth

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Comparing depreciation functions

Comparing depreciation functions - Microsoft Excel Tutorial

From the course: Excel: Financial Functions in Depth

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Comparing depreciation functions

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- [Instructor] Now that we've had a good look at how to calculate each of the various types of depreciation methods using their Excel functions, let's do an example where we compare each of them side by side. When we look at the depreciation amounts visually over time, which you might have noticed that I like to do, we can see that the straight-line method looks like this. But if we were to depreciate exactly the same asset using the SYD method, it looks very different. It depreciates in a linear fashion, which is quite different to the fixed declining method, which depreciates exponentially instead of in a straight line. And we can see that the other declining methods are not too different from the fixed declining method. So let's go back to Excel now and build these formulas together. Okay, so we've got the input of a purchase price of 50,000, salvage value of 5,000, the useful life is 10 years, and we start in 2026. So let's go ahead and use the SLN and we'll put in our cost��

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