A Depreciation Model is the formula that use to calculate depreciation of assets. The Depreciation Models are: 1) Straight Line Depreciation model is to assume that the asset decreases by a fixed amount every year until the asset reaches its salvage value. 2) Exponential depreciation (or Accelerated Depreciation) model is based on a fixed annual percent decrease that allows company to write off assets faster in earlier years than the straight line depreciation method.
Related Definitions in the Project: The Economic Reviews
