Returns the declining balance with conversion to a straight-line depreciation
Category: Financial
DEPDBSL ( p,v,y,r )
p
is an integer, the period for which the calculation is to be done.
v
is numeric, the depreciable initial value of the asset.
y
is an integer, the lifetime of the asset.
Range: y > 0
r
is numeric, the rate of depreciation that is expressed as a fraction.
Range: r ‰
The DEPDBSL function returns the depreciation by using the declining balance method with conversion to a straight-line depreciation, which is given by
where
and int ( )denotes the integer part of a numeric argument.
The p and y arguments must be expressed by using the same units of time. The declining balance that changes to a straight-line depreciation chooses for each time period the method of depreciation (declining balance or straight-line on the remaining balance) that gives the larger depreciation.
An asset has a depreciable initial value of $1,000 and a ten-year lifetime. Using a declining balance rate of 150 percent, the depreciation of the value of the asset in the fifth year can be expressed as
y5=depdbsl(5,1000,10,1.5);
The value returned is 87.00. The first and the third arguments are expressed in years .