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Show the depreciation effect of a mid-year capital purchase

  • For FP&A and financial analysts
  • You practice Catching mistakes and made-up facts
  • Time about 5 minutes
  • Level Intermediate

About this exercise

You're showing the depreciation effect of a capital purchase on the forecast. Write a prompt for plain text with lines starting "Annual depreciation:", "This year (6 months):" and "Next year:", each with the math. Straight-line over 5 years with no salvage value, starting July 1. Don't mention tax depreciation or cash payment terms. Under 60 words. No bullets or numbering.

Common mistakes when you ask AI for this

  • Full year this year. The AI books $24,000 this year. Try: Say: "This year counts 6 months: annual x 6 / 12."
  • Mentioning tax depreciation. The AI compares to the tax schedule. Try: Add: "Do not mention tax depreciation or payment installments."
  • Wrong life. The AI divides by 12 months or 10 years. Try: Add: "Annual depreciation = cost / 5 years."
  • Markdown extras. The AI adds bold labels, headings and a closing note. Try: Say: "Plain text, no bold. Output only the lines asked for."
  • Trusting the AI to count words. AI is bad at counting and runs past word limits. Try: Ask for fewer words than the real cap and keep each line short.

What a strong prompt includes

  • Names the three lines
  • Gives the 6/12
  • Gives the life
  • Bans tax and payments
  • Caps length

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