ModeldrillDepreciation from the year of purchase
A financial modeling exercise from Modeldrill. Solve it with a live spreadsheet grid in your browser, with Fill right and Fill down, and it is checked the moment you submit.
The task
Each asset starts depreciating in the year it is bought (column C) and runs for its life (column D). Fill E5:I7 with one formula: charge cost divided by life only in years from the first year up to, but not including, first year plus life.
What this exercise teaches
A bike bought in 2027 with a 3-year life depreciates in 2027, 2028 and 2029. Using <= on the end test would add a fourth year, which is the classic off-by-one in capex schedules.
A hint if you get stuck
Two tests must both be true: the year is on or after the first year, and the year is before first year plus life. Wrap them in AND.
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