depgendb
General declining-balance depreciation schedule
Description
Examples
Calculate the Declining-Balance Depreciation
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
Cost
— Initial value of the asset
numeric
initial value of the asset, specified as a scalar numeric.
Data Types: double
Salvage
— Salvage value of the asset
numeric
Salvage value of the asset, specified as a scalar numeric.
Data Types: double
Life
— Number of periods over which the asset is depreciated
numeric
Number of periods over which the asset is depreciated, specified as a scalar numeric.
Data Types: double
Factor
— Depreciation factor
numeric
Depreciation factor, specified as a scalar numeric. When
Factor
= 2
, then the
double-declining-balance method is used.
Data Types: double
Output Arguments
Depreciation
— Depreciation
vector
Depreciation, returned as the declining-balance depreciation for each period.
Version History
Introduced before R2006a
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