Describe at least two different depreciation methods for each of the current data centers

Posted: January 23rd, 2023

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The CEO has asked you to provide a briefing on the costs for the lifecycle management of each of the two company data centers in New York and Germany, respectively. Each data center has a different total lifecycle cost based on the total volume of physical data center IT resources and salvage costs. She has asked that your briefing account for resource depreciation and cyber risk implications as the data center approaches the end-of-lifecycle. Her focus is on gaining a better understanding of the depreciating value of the data centers and how a decision to expand, abandon, or consolidate data centers could be impacted by the depreciating value of each of the data centers. She is also considering how lifecycle costs associated with maintaining data centers could be reduced by leveraging commercially available data centers through cloud-computing technologies, like Amazon Web Services (AWS). Information related to the two data centers follows below:
Table 2
Data Center Information Table

Data Center 1 (New York)
Data Center 2 (Germany)
Current Book Value
$25,000,000
$10,000,000
Estimated Useful Life
8 years
10 years
Salvage Value
0
$2,500,000
Be sure your PowerPoint presentation for the CEO addresses the following:
Describe at least two different depreciation methods for each of the current data centers to forecast future cash flows for lifecycle management.
Include cybersecurity risk management considerations in relation to depreciation method timelines.
Include speaker notes of at least 150-250 words that describe what would be said to the audience for each slide.
Ensure speaker notes are not a repeat of slide content; the notes are the explanation of the slide content, which should outline details on the depreciation method applied.
Include citations and a reference list at the end of the presentation.

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