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dmoytoday at 6:56 PM1 replyview on HN

5 years is maybe referring to the accounting schedule for depreciation on computer hardware, not the actual useful lifetime of the hardware.

It's a little weird to phrase it like that though because you're right it doesn't mean you have to throw it out. Idk if this is some reflection of how IBM handles finance stuff or what. Certainly not all companies throw out hardware the minute they can't claim depreciation on it. But I don't know the numbers.

Anyways, 5 years is an infection point on numbers. Before 5 years you get depreciation to offset some cost of running. After 5 years, you do not, so the math does change.


Replies

skeeter2020today at 6:58 PM

that is how the investments are costed though, so makes sense when we're talking return on investment, so you can compare with alternatives under the same evaluation criteria.