Development of a Simulation Software for Plant Asset Depreciation Computation Using Modified Accelerated Cost Recovery System - Open Access Library Journal

OALibJ > Vol.5 No.3, March 2018

Development of a Simulation Software for Plant Asset Depreciation Computation Using Modified Accelerated Cost Recovery System ()

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DOI: 10.4236/oalib.1104419 886 Downloads 2,072 Views

Author(s)

Basil Olufemi Akinnuli, Oluwole Timothy Ojo

Affiliation(s)

Department of Industrial and Production Engineering, The Federal University of Technology, Akure, Nigeria.

ABSTRACT

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.

KEYWORDS

Simulation, Software, Plant Asset, Depreciation

Share and Cite:

Akinnuli, B. and Ojo, O. (2018) Development of a Simulation Software for Plant Asset Depreciation Computation Using Modified Accelerated Cost Recovery System. Open Access Library Journal, 5, 1-9. doi: 10.4236/oalib.1104419.

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