SLN is the simplest Depreciation function that Excel offers, and is short for Straight Line.
This means that if we were to graph the Asset Values, the line would appear straight, because each of the depreciation values will be the same.
We’ll write Equals, SLN, select the Cost, make it absolute, select the Residual Value, make it absolute, and then select the life span, and make that absolute as well.
We are given a value of thirteen hundred and sixty, which, if we drag down, we can see will be the same for all the periods.
If we take a look at the Asset Value section, we can see that the value is decreasing steadily until it gets to the Residual Value above.
We can insert a graph for the Asset Values to see that the line is straight.
In this lesson we have gone through SLN, the first of five Depreciation functions provided by Excel.