Difference between revisions of "Modeling Depreciation"
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To model depreciation, two inputs are required: | To model depreciation, two inputs are required: | ||
| − | + | # a schedule of spend to be depreciated | |
| − | + | # a depreciation schedule | |
For this example, the index time is 10 year series with | For this example, the index time is 10 year series with | ||
| Line 18: | Line 18: | ||
<pre style="background:white; border:white; margin-left: 1em;"> | <pre style="background:white; border:white; margin-left: 1em;"> | ||
Function_Depreciation, | Function_Depreciation, | ||
| − | + | Parameters: (SpendOverTime, DepreciationSchedule), | |
| − | + | Definition: | |
index depr_years = copyindex(time); | index depr_years = copyindex(time); | ||
var deprStartyr := time; | var deprStartyr := time; | ||
| Line 31: | Line 31: | ||
== Using Dynamic == | == Using Dynamic == | ||
| − | The following model models Amortization (same concept as depreciation) using [[Dynamic]], which an approach slightly different from the above description | + | The following model models Amortization (same concept as depreciation) using [[Dynamic]], which an approach slightly different from the above description: [[media:Fixed Amortization Schedule.ana|Fixed Amortization Schedule.ana]] |
| − | :[[media:Fixed Amortization Schedule.ana|Fixed Amortization Schedule.ana]] | ||
The model requires Analytica 4.2 or better to use. (Nothing here requires 4.2 -- it is just that some 4.2 features were used for convenience). | The model requires Analytica 4.2 or better to use. (Nothing here requires 4.2 -- it is just that some 4.2 features were used for convenience). | ||
| Line 38: | Line 37: | ||
==See Also== | ==See Also== | ||
* [[Slice]] | * [[Slice]] | ||
| + | * [[CopyIndex]] | ||
* [[Dynamic]] | * [[Dynamic]] | ||
* [[Indexes and arrays: An introduction]] | * [[Indexes and arrays: An introduction]] | ||
* [[User-Defined Functions]] | * [[User-Defined Functions]] | ||
Revision as of 04:56, 12 February 2016
To model depreciation, two inputs are required:
- a schedule of spend to be depreciated
- a depreciation schedule
For this example, the index time is 10 year series with
Constant startYear = 2008Time:=Sequence (startYear, startYear + 9,1)
Example depreciation schedule is a 5yr MACRS depreciation schedule entered as a variable:
Table(time)(.2, .32, .192, .1152, .1152, .0576, 0, 0, 0, 0)
SpendOverTime is a variable indexed by time with the capital spend amounts as desired:
Table(time)(0, 0, 111, 0, 0, 0, 0, 0, 0, 0)
Create a user defined function:
Function_Depreciation,
Parameters: (SpendOverTime, DepreciationSchedule),
Definition:
index depr_years = copyindex(time);
var deprStartyr := time;
sum(if time - depr_years + 1 < 1 then 0 else
slice(SpendOverTime, time, Depr_years - startYear + 1)*slice(depreciationSchedule, time, time - depr_years + 1), depr_years)
Then create a depreciation test variable to check the result
Variable: DepreciationTestdefinition: function_Depreciation(spendOverTime, DepreciationSchedule)
Using Dynamic
The following model models Amortization (same concept as depreciation) using Dynamic, which an approach slightly different from the above description: Fixed Amortization Schedule.ana
The model requires Analytica 4.2 or better to use. (Nothing here requires 4.2 -- it is just that some 4.2 features were used for convenience).
See Also
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