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Model Facility Asset Depreciation

MediumStrategy00:00
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Your question is Model Facility Asset Depreciation. Take a moment with it on the right.

Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).

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Problem

Scenario

You're supporting a finance team that is evaluating a new manufacturing facility. Leadership wants a clean way to reflect the facility's capital assets in the financial model so operating profit, cash flow, and returns are not overstated.

Question

Can you walk me through how you would model the depreciation of capital assets for a new manufacturing facility?