DEPRECIATION_VDB Function
Evaluates the depreciation of an asset for any given period using the variable-declining balance method.
Usage
result = DEPRECIATION_VDB(cost, salvage, life, start, end_per, factor, sln)
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.
start—Starting period in the calculation. start cannot be less than 1; or greater than end_per.
end_per—Final period for the calculation. end_per cannot be greater than life.
factor—Rate at which the balance declines. factor must be positive.
sln—If equal to zero, do not switch to straight-line depreciation even when the depreciation is greater than the declining balance calculation.
Returned Value
result—The depreciation of an asset for any given period, including partial periods, using the variable-declining balance method. If no result can be computed, NaN is returned.
Input Keywords
Double—If present and nonzero, double precision is used.
Discussion
Function DEPRECIATION_VDB computes the depreciation of an asset for any given period using the variable-declining balance method using the following:
If sln = 0:
If sln ≠ 0:
where ddbi is computed from the function DEPRECIATION_DDB for the ith period. k = the first period where straight-line depreciation is greater than:
the depreciation using the double-declining balance method.
Example
In this example, DEPRECIATION_VDB computes the depreciation of an asset between the 10th and 15th year, which costs $25,000 initially, lasts 15 years, and has a salvage value of $5,000.
PRINT, DEPRECIATION_VDB(25000., 5000., 15, 10, 15, 2, 0)
; PV-WAVE prints: 976.69
