Difference between revisions of "Manuals/calci/VDB"

Revision as of 05:21, 27 February 2014

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.

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:

$rate={\frac {factor}{lifetime}}$

@@ Line 9: / Line 9: @@
 ==Description==
-This function computes the depreciation of an asset for any period you specify, using the double-declining balance method.
+*This function computes the depreciation of an asset for any period you specify, using the double-declining balance method.
-SYD is calculated as follows:
+*To calculate depreciation, VDB uses a fixed rate.
-VDB
+* 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).
-Lets see an example,
+*The rate is given by:
+<math>rate = \frac{factor}{lifetime}</math>
-VDB(C, salvage, L, SP, EP, factor, nswitch)
-'''B'''
 ==Example==