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How do I forecast depreciation over a five year horizon? The current formula I am using is (Depreciation Current year / PPE, gross Previous year)
How do I forecast depreciation over a five year horizon?
The current formula I am using is (Depreciation Current year / PPE, gross Previous year) * PPE, gross current year.
Current year (20X2) depreciation is 2,407
The issues I am having is how to find PPE, gross.
The information provided for PPE is:
20X2 | 20X1 | |
Land and Land improvements | 213 | 224 |
buildings and building and leasehold improvements | 5678 | 6049 |
Information Technology Equipment | 9643 | 10589 |
Production, engineering, office, and other equipment | 3161 | 3222 |
Total - gross | 18695 | 20085 |
Less: Accumulated depreciation | 13361 | 14390 |
Total - net | 5334 | 5694 |
If I can figure out what PPE, gross is for 20X3 - 20X7, I will be able to figure this out.
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