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this post was submitted on 10 Jan 2024
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That doesn't make sense because salaries are a current expense, not a capital expense to be amortized. And why 5 years? The work a software engineer does may be outdated in a year or two. Only certain legacy applications are around for 5 years.
The amortization time period is supposed to match the usefulness of the item purchased. Basically, software engineers are an ongoing expense, not R&D.
Oh if that were true.
Those are the legacy applications. This is the survivor bias 100%. You don't see all the projects that were created and then dumped after a year or two (see Google).
Real laughing-crying emoji hours.
I've got a friend who got his job entirely because he's under 40 and knows Fortran.