DDB(cost, salvage, life, period [,factor])
Returns the depreciation of an asset in a single period (double or triple declining balance method).
|cost||The original cost of the asset.|
|salvage||The value of the asset at the end of its life.|
|life||The number of periods over which the asset is being depreciated.|
|period||The period to calculate the depreciation over.|
|factor||(Optional) The number indicating the type of declining balance to use:|
2 - double declining balance depreciation (default)
3 - triple declining balance depreciation
|* The double-declining balance method computes depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods.|
* All five arguments must be positive numbers.
* The value at the end of the depreciation (sometimes called the salvage value of the asset).
* The number of periods over which the asset is being depreciated (sometimes called the useful life of the asset).
* The "period" and "life" must be expressed in the same units of time: years, months or days.
* If "cost" < "salvage", then ??
* If "factor" is left blank, then 2 is used.
* This is an example of a geometric progression.
* Use the VDB function to switch to straight-line depreciation when the depreciation is greater than the declining balance calculation.
* This function uses the following formula to calculate depreciation for a period: ((cost-salvage) - total depreciation from prior periods) * (factor/life).
* You can use the DB function to return the depreciation of an asset in a single period (declining balance method).
* You can use the SLN function to return the straight line depreciation of an asset for one period.
* You can use the SYD function to return the depreciation of an asset using the sum of years method.
* You can use the VDB function to return the depreciation of an asset using a variable declining method.
* For a working example refer to the Quant > Accounting > Depreciation page.
* The equivalent VBA function is DDB
* For the Microsoft documentation refer to support.microsoft.com
|1 - What is the depreciation of my car in the first year if it cost me £45,000 and has a resale value of £15,000 after 4 years.|
2 - What is the depreciation of my car in the second year.
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