Difference between revisions of "Manuals/calci/VDB"

Revision as of 20:23, 2 March 2018

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

$C$ 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
$SP$ is the Ending periods to calculate the depreciation
$EP$ is the Starting 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:

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