Investment Studio > Expressions > Functions > Financial > VDB
float vdb(float initial_cost, float salvage_value, float total_periods, float start_period, float end_period, float factor = 2, boolean no_switch = FALSE)
Returns the depreciation of an asset for the specified periods (including partial periods) using the specified balance method.
initial_cost > 0 is the initial value of the depreciating asset.
salvage_value < initial_cost is the final value of the asset after depreciation.
total_periods >= 0 is the number of periods over which the asset depreciates (the asset's useful life).
start_period >= 0 is the sequential number of the first period contributing to the total depreciation returned.
end_period >= start_period is the sequential number of the last period contributing to the total depreciation returned.
factor is the depreciation rate. If omitted, it defaults to 2 (double-declining balance method).
no_switch specifies whether vdb is allowed to switch to straight-line depreciation (see function sln) when the declining balance method yields slower depreciation. If omitted, no_switch defaults to FALSE (switching allowed).
Example
Consider a new office computer with the following properties:
The depreciation during the first month according to the default double-declining balance method is
=vdb(3000, 500, 5, 0, 1 / 12)
= USD 100.