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:
Example
| A | B | |
|---|---|---|
| 1 | Initial Cost(C) | 3500 |
| 2 | Salvage Value | 350 |
| 3 | 12 | |
| 4 | 0 | |
| 5 | 1 |