Part II Valuation and Capital Budgeting Depreciation is expressed as a percentage of the asset's cost. These schedules are based on the IRS publication Depreciation. Details of depreciation are presented later in the chapter. Three-year depreciation actually carries over four years because the IRS assumes the purchase is made in midyear. 10- Assume you will retire in 12 years. You plan to save 5000 Rials every year for next 6 years starting from end of this year, and 8000 Rials every year for the remaining 6 years (from year 7 to year 12). Assume interest rate is 10%. 1. Determine the overall value of your savings by the start of your retirement period 2. How much can you afford to spend each year during your expected life of 20 years following retirement