depgendb

General declining-balance depreciation schedule

Description

example

Depreciation = depgendb(Cost,Salvage,Life,Factor) computes the declining-balance depreciation for each period.

Examples

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A car is purchased for $10,000 and is to be depreciated over five years. The estimated salvage value is $1000. Using the double-declining-balance method, the function calculates the depreciation for each year and returns the remaining depreciable value at the end of the life of the car.

Define the depreciation.

Life = 5;
Salvage = 0;
Cost = 10000;
Factor=2;

Use depgendb to calculate the depreciation.

Depreciation = depgendb(10000, 1000, 5, 2)
Depreciation = 1×5
103 ×

    4.0000    2.4000    1.4400    0.8640    0.2960

The large value returned at the final year is the sum of the depreciation over the life time and is equal to the difference between the Cost and Salvage. The value of the asset in the final year is computed as (Cost - Salvage) = Sum_Depreciation_Upto_Final_Year.

Input Arguments

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initial value of the asset, specified as a scalar numeric.

Data Types: double

Salvage value of the asset, specified as a scalar numeric.

Data Types: double

Number of periods over which the asset is depreciated, specified as a scalar numeric.

Data Types: double

Depreciation factor, specified as a scalar numeric. When Factor = 2, then the double-declining-balance method is used.

Data Types: double

Output Arguments

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Depreciation, returned as the declining-balance depreciation for each period.

Introduced before R2006a