DACCDB Function

Returns the accumulated declining balance depreciation.

Category:

Financial

Syntax

DACCDB(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 expressed as a decimal.

Range

r > 0

Details

The DACCDB function returns the accumulated depreciation by using a declining balance method. The formula is

\begin{matrix} D A C C D B (p, v, y, r) = {\begin{matrix} 0 & p \leq 0 \\ v (1 - {(1 - \frac{r}{y})}^{i n t (p)}) (1 - (p - i n t (p)) \frac{r}{y}) & p > 0 \end{matrix} \end{matrix}

Note that int(p) is the integer part of p. 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 a depreciable initial value of $1000 and a fifteen-year lifetime. Using a 200 percent declining balance, the depreciation throughout the first 10 years can be expressed as

   a=daccdb(10,1000,15,2);

The value returned is 760.93. The first and the third arguments are expressed in years.