What did you use as a depreciation schedule. I have seen a figure as high
as 7 years to fully depreciate a computer. However, my impression is that
by the end of three years most computers have been demoted to an auxiliary
role. That is, they get handed down. The middle aged server becomes some
engineer's workstation; the executive's old computer gets handed to his
secretary, and so on.
The computer might survive five or six years in company service before being
considered totally obsolete or relegated to being the fax server.
I guess from the standpoint of accounting this isn't a problem. They say
use linear depreciation over five years and that is about right. The
problem is more political. The CEO reads that as an expected service life
of five years then wants to know why the CIO wants new front-line computers
in 30 months.
> -----Original Message-----
> From: plug-discuss-admin@lists.PLUG.phoenix.az.us
> [mailto:plug-discuss-admin@lists.PLUG.phoenix.az.us]On Behalf Of George
> Toft
> Sent: Wednesday, May 30, 2001 6:55 AM
> To: plug-discuss@lists.PLUG.phoenix.az.us
> Subject: Re: Insurer Considers Microsoft NT High-Risk
>
>
> "Cost" is very tricky. My thesis was on the Total Cost of Ownership
> for Workgroup Servers, and the O/S cost is irrelevant.
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