This work presents the computation of depreciation
under Modified Accelerated Cost Recovery System using simulation software
developed for the purpose. The three case studies presented provide in-depth
analysis and applications of the simulation software that was developed. The
results from the three case studies proved that the investment of $900,000 by Virgin Atlantic
airline to purchase three new aircrafts will be recovered in 8 years; Toyota’s
investment of $152,000 in
the automated assembly line will be recovered in 8 years while AEG’s
investments in the two forklift trucks and crane will both be recovered in 8
years for the same reason. These results gave a quick insight for evaluating
such an unstructured real life problem as depreciation (cost recovery) in organizations.
Cite this paper
Akinnuli, B. O. and Ojo, O. T. (2018). Development of a Simulation Software for Plant Asset Depreciation Computation Using Modified Accelerated Cost Recovery System. Open Access Library Journal, 5, e4419. doi: http://dx.doi.org/10.4236/oalib.1104419.
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