What is the depreciable life that the analyst uses

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Question - The following information is available about Company DEF's depreciable assets on January 1, 2019 (numbers are in € millions):

Original Cost €50,000

Depreciable Base €47,500

Accumulated Depreciation (1/1/2019) €28,500

Depreciable Life 10 years

An analyst believes that the above described estimates do not reflect the underlying economic depreciation of Company DEF's assets. As a result, the analyst wants to adjust Company DEF's financial statements based on his own estimates. While the analyst assumes that the residual value assumption of Company DEF is correct, the analyst adjusts the depreciable life of the asset. In adjusting the financial statements of Company DEF, the analyst decreases the 1/1/2019 accumulated depreciation by €10687.5. What is the depreciable life (in years) that the analyst uses in adjusting Company DEF's financial statements?

Reference no: EM133053963

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