| 1 | A | B | C | D | E |
| --- | --- | --- | --- | --- | --- |
| 2 | 0 ex post versus ex ante depreciation rates for machinery and equipment, 1985 to 2010 |  |  |  |  |
| 3 |  | depreciation rate |  | expected life |  |
| 4 |  | ex post simultaneous estimation | ex ante declining-balance rate from simultaneous estimation | ex post simultaneous estimation | ex ante survey |
| 5 |  | rate |  | years |  |
| 6 | asset description and code |  |  |  |  |
| 7 | office furniture, furnishing | 0.227 | 0.275 | 9.2 | 7.6 |
| 8 | computers, associated hardware and word processors | 0.431 | 0.430 | 4.9 | 4.9 |
| 9 | non-office furniture, furnishings and fixtures | 0.240 | 0.293 | 9.7 | 7.9 |
| 10 | scientific, professional and medical devices | 0.189 | 0.243 | 11.1 | 8.6 |
| 11 | heating, electrical, plumbing, air conditioning and refrigeration equipment | 0.130 | 0.161 | 16.8 | 13.5 |
| 12 | pollution abatement and control equipment | 0.125 | 0.167 | 16.8 | 12.5 |
| 13 | motors, generators, transformers, turbines, compressors and pumps of all types | 0.103 | 0.112 | 20.3 | 18.8 |
| 14 | heavy construction equipment | 0.157 | 0.285 | 14.4 | 7.9 |
| 15 | tractors of all types and other field equipment | 0.170 | 0.322 | 13.6 | 7.2 |
| 16 | capitalized tooling and other tools | 0.229 | 0.309 | 10.2 | 7.5 |
| 17 | drilling and blasting equipment | 0.156 | 0.182 | 14.2 | 12.1 |
| 18 | automobiles and major replacement parts | 0.279 | 0.495 | 7.5 | 4.2 |
| 19 | buses (all types) and major replacement parts | 0.103 | 0.170 | 22.0 | 13.4 |
| 20 | trucks, vans, truck tractors, truck trailers and major replacement parts | 0.201 | 0.304 | 10.5 | 6.9 |
| 21 | other transportation equipment | 0.162 | 0.279 | 13.0 | 7.5 |
| 22 | computer-assisted processing machinery and equipment | 0.134 | 0.177 | 15.6 | 11.8 |
| 23 | non-computer-assisted processing machinery and equipment | 0.125 | 0.190 | 16.7 | 11.0 |
| 24 | communication and related equipment | 0.201 | 0.233 | 10.4 | 9.0 |
| 25 | safety and security equipment and other machinery and equipment | 0.167 | 0.220 | 13.7 | 10.4 |
| 26 | mean, all assets | 0.218 | 0.297 | 11.5 | 8.2 |

Question: how many years are the average assessed ex post estimates of life?
Answer: 11.5

Question: how many years are the average assessed ex ante expected service life estimates?
Answer: 8.2

Question: what is the depreciation rate of the average ex post?
Answer: 0.218

Question: what is the depreciation rate of the average ex ante?
Answer: 0.297