DEPRECIATION_DDB Function (PV-WAVE Advantage)
Evaluates the depreciation of an asset using the double-declining balance method.
Usage
result = DEPRECIATION_DDB(cost, salvage, life, period, factor)
Input Parameters
cost—Initial value of the asset.
salvage—The value of an asset at the end of its depreciation period.
life—Number of periods over which the asset is being depreciated.
period—Period for which the depreciation is to be computed. period cannot be greater than life.
factor—Rate at which the balance declines. factor must be positive.
Returned Value
result—The depreciation of an asset using the double-declining balance method for a period specified by the user. If no result can be computed, NaN is returned.
Input Keywords
Double—If present and nonzero, double precision is used.
Discussion
Function DEPRECIATION_DDB computes the depreciation of an asset using the double-declining balance method for a specified period.
It is computed using the following:
[cost – salvage(total depreciation from prior periods)](factor/life)
Example
In this example, DEPRECIATION_DDB computes the depreciation of an asset, which costs $2,500 initially, lasts 24 periods and a salvage value of $500, for each period.
ans = FLTARR(24)
life = 24
cost = 2500
salvage = 500
factor = 2
FOR period=1L, life DO $
ans(period-1) = DEPRECIATION_DDB(cost, salvage, life, $
period, factor)
PM, ans
; This results in the following output:
; 208.333
; 190.972
; 175.058
; 160.470
; 147.097
; 134.839
; 123.603
; 113.302
; 103.860
; 95.2054
; 87.2716
; 79.9990
; 73.3324
; 67.2214
; 61.6196
; 56.4846
; 51.7776
; 47.4628
; 22.0906
; 0.00000
; 0.00000
; 0.00000
; 0.00000
; 0.00000
Version 2017.0
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