Topic: Internal Financing Describe how Ferment AG can generate financial resources for investment purposes from depreciation. To simplify matters, assume that Ferment AG owns four large plants, which are to be depreciated on a straight-line basis over four years at the end of each year. The acquisition costs per plant amount to EUR 24 million. Furthermore, assume that these systems were purchased one after the other per year. Create a tabular cost estimate to determine the released depreciation amounts. Name this financing effect and briefly describe what companies have to pay attention to in this form of financing. What would happen if the useful life of the asset were 1 year longer than the depreciation period? Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Depreciation of Plants A B D Free Cash Flows Investments Accumulated Free Cash Flows Topic: Internal Financing Describe how Ferment AG can generate financial resources for investment purposes from depreciation. To simplify matters, assume that Ferment AG owns four large plants, which are to be depreciated on a straight-line basis over four years at the end of each year. The acquisition costs per plant amount to EUR 24 million. Furthermore, assume that these systems were purchased one after the other per year. Create a tabular cost estimate to determine the released depreciation amounts. Name this financing effect and briefly describe what companies have to pay attention to in this form of financing. What would happen if the useful life of the asset were 1 year longer than the depreciation period? Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Depreciation of Plants A B D Free Cash Flows Investments Accumulated Free Cash Flows