Manuals/calci/VDB

VDB(C, Salvage, L, SP, EP, Factor, NSwitch)

• Where 'C' is the initial cost of the asset
• 'Salvage' is the value at the end of the depreciation
• 'L' is the number of periods over which the asset is depreciated
• 'SP' , 'EP' are the starting and ending periods to calculate the depreciation
• 'factor' is the rate at which the balance declines
• 'NSwitch' is a logical value specifying whether to switch to straight-line depreciation when depreciation is greater than the declining balance calculation.

Description

• This function computes the depreciation of an asset for any period you specify, using the double-declining balance method.
• To calculate depreciation, VDB uses a fixed rate.
• When factor = 2 this is the double-declining-balance method (because it is double the straight-line rate that would depreciate the asset to zero).
• The rate is given by:

$rate={\frac {Factor}{L}}$

Example

Spreadsheet

	A	B
1	3500
2	350
3	12
4	1.5982
5	583.3333