VDB

Used only in ReliaSoft Workbooks

Description: For a period you specify, returns the depreciation of an asset, using the double-declining balance method. VDB stands for variable declining balance.

Syntax: VDB(Cost, Salvage, Life, Start_Period, End_Period)

• Cost is the initial cost of the asset.
• Salvage is the value at the end of the depreciation (sometimes called the salvage value of the asset).
• Life is the number of periods over which the asset is being depreciated (sometimes called the useful life of the asset).
• Start_Period is the starting period for which you want to calculate the depreciation. Start_Period must use the same units as life.
• End_Period is the ending period for which you want to calculate the depreciation. End_Period must use the same units as life.

Remarks:

• All arguments must be positive numbers.

Example:

Suppose a factory purchases a new machine. The machine costs $2,400 and has a lifetime of 10 years. The salvage value of the machine is $300. The following examples show depreciation over several periods. The results are rounded to two decimal places.

• VDB(2400, 300, 3650, 0, 1) = $1.32 [the first day's depreciation]
• VDB(2400, 300, 120, 0, 1) = $40.00 [the first month's depreciation]
• VDB(2400, 300, 10, 0, 1) = $480.00 [the first year's depreciation]
• VDB(2400, 300, 120, 6, 18) = $396.31 [the depreciation between the sixth month and the eighteenth month]