So therefore, I put it down there.

They're usable over two years.

And there's all sorts of intangible assets that you might amortize.

And then their SG amp A is the same.

So I'll just write down the number first.

And then instead of having an equipment expense, instead of having that expense, they'll have an equipment depreciation expense.

And amortizing really just means spreading out the cost of this asset, just like depreciation was spreading out the cost of a physical asset.

This is the interest rate you assume.

Really, in my mind, it's very similar to depreciation.

And I'm running out of time in this video, and I'll cover it in the next, but you might have also heard of the word

And just so you know, most corporate debt actually works that way.

So, for example, in this one, at the beginning of the period, before the 2007 income statement, the asset was worth 50,000.

This is all a review of the depreciation video.

Well, you know depreciation, man.

Depreciation is tangible.

To figure out the cash from operations from actually how much cash the operations are producing.

So no cash went out of the door.

That's just the gasoline cost.

If you divide 50,000 by 4, it's 12,500.

No, we didn't.

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So 20,000 over 3 years is the life of that truck.

So I used half of it in year one.

Our profit, once again, is 30,000.

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Our short term goal for this is to be half the price of solar cells and our longer term goal is to be less than a five year payback.