Here is the breakdown based on two methods looking at the first 3 years. Accelerated Method: Depreciated Amount $
NBV $
1st Year
21,641
139,859
2nd Year
18,741
99,476
3rd Year
13,330
86,146
Straight-line method:
Depreciated Amount $
NBV $
1st Year
22,725
138,775
2nd Year
22,725
116,050
3rd Year
22,725
99,325
The accelerated depreciation method, while potentially advantageous in certain situations, may not be the
most appropriate choice for HotelWhistler at the moment addressing the current financial scenario. As the
company is already experiencing loss in revenue comparable to increase in operating expenses and prepaid expenses, the accelerated method will be resulting in higher expenses particularly in the first few years. This may further exacerbate cash flow challenges and financial instability particularly in this reduced revenue period.
