This function calculates the depreciation of an asset for a specified period using the double-declining balance method or another method you specify.
DDB(cost, salvage, life, period, factor)
This function has these arguments:
Initial cost of the asset
Value at the end of depreciation
Number of periods over which the asset is being depreciated
Period for which you want to calculate the depreciation in the same units as thelifeargument
[Optional] Rate at which the value declines; if omitted, the calculation uses 2 (double-declining method)
All arguments must be positive numbers.
This function uses the following calculation for depreciation for a period:
cost – salvage(total depreciation from prior periods) x factor/life
Accepts numeric data for all arguments. Returns numeric data.
DDB(500000,5000,5,1,4) gives the result of $40,0000