what is growth of depreciation
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In our day to day life we observe that there are things or entities like the population of a city, the value of the property, the height of a tree, weight, and height of a child, the number of bacteria, etc. which increase in magnitude over a period of time. The relative increase in a quantity or entity is called growth and growth per unit of time is called the rate of growth.
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If the growth rate is stable, the formula for capital expenditures to depreciation can be defined as: capital expenditures to depreciation = growth/net depreciation rate + 1. The problem with this formula is that you must input the net depreciation rate and the net depreciation rate is a function of growth.
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