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How are you depreciating the MRI machine? Why is the year one cost so high? I would’ve expected the MRI machine to depreciate over a decade.


Depreciation is a term relevant to valuing assets and liabilities on the balance sheet and P&L accounts. oliwarner's figures are cashflow figures, a completely different kind of account, which is what you look to when asking how much financing is needed, a key factor in whether the purchase is given the go-ahead.


I'm not. I'm assigning a 15y lifespan, building in maintenance into the running cost and assuming we just run it into the ground; buying another every 15 years.

Year 1 is so high in the in-house models because that's what's paying for the machine.




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