DEPDB Function

DEPDB Function

Returns the declining balance depreciation

Category: Financial

Syntax

DEPDB ( p,v,y,r )

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 ‰

Details

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

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.

Examples

An asset has an initial value of $1,000 and a fifteen-year lifetime. Using a declining balance rate of 200 percent, 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 .