What is DIRTI 5?

Depreciation is simply the tax mechanism for recovering the capital cost of the facilities. In this analysis that is what we are attempting to estimate – the fair, use-value or capital cost of the facilities. Interest on the capital invested (fair value) will be accounted for in the capitalization process used to convert annual net-earnings into a capital (fair) value. The remaining facility-related costs include repairs (R), taxes (T) and insurance (I).