DEPDB Function

Returns the declining balance depreciation.

Category:

Financial

Syntax

DEPDB(p,v,y,r)

Required Arguments

p

is numeric, the period for which the calculation is to be done. For noninteger p arguments, the depreciation is prorated between the two consecutive time periods that precede and follow the fractional period.

v

is numeric, the depreciable initial value of the asset.

y

is numeric, the lifetime of the asset.

Range

y > 0

r

is numeric, the rate of depreciation that is expressed as a fraction.

Range

r ≥ 0

Details

The DEPDB function returns the depreciation by using the declining balance method, which is given by

\begin{matrix} D E P D B (p, v, y, r) & = D A C C D B (p, v, y, r) \\ - D A C C D B (p - 1, v, y, r) \end{matrix}

The p and y arguments must be expressed by using the same units of time. A double-declining balance is obtained by setting r equal to 2.

Example

An asset has an initial value of $1,000 and a fifteen-year lifetime. Using a declining balance rate of 200%, the depreciation of the value of the asset for the tenth year can be expressed as

   y10=depdb(10,1000,15,2);

The value returned is 36.78. The first and the third arguments are expressed in years.