depreciation_db
Evaluates the depreciation of an asset using the fixed-declining balance method.
Synopsis
#include <imsl.h>
float imsl_f_depreciation_db (float cost, float salvage, int life, int period, int month)
The type double function is imsl_d_depreciation_db.
Required Arguments
float cost (Input)
Initial value of the asset.
float salvage (Input)
The value of an asset at the end of its depreciation period.
int life (Input)
Number of periods over which the asset is being depreciated.
int period (Input)
Period for which the depreciation is to be computed. period cannot be less than or equal to 0, and cannot be greater than life +1.
int month (Input)
Number of months in the first year. month cannot be greater than 12 or less than 1.
Return Value
The depreciation of an asset for a specified period using the fixed-declining balance method. If no result can be computed, NaN is returned.
Description
Function imsl_f_depreciation_db computes the depreciation of an asset for a specified period using the fixed-declining balance method. Routine imsl_f_depreciation_db varies depending on the specified value for the argument period, see table below.
period | Formula |
period = 1 | |
period = life | |
period other than 1 or life | |
where
NOTE: rate is rounded to three decimal places. |
Example
In this example, imsl_f_depreciation_db computes the depreciation of an asset, which costs $2,500 initially, a useful life of 3 periods and a salvage value of $500, for each period.
#include <stdio.h>
#include <imsl.h>
int main()
{
float cost = 2500;
float salvage = 500;
int life = 3;
int month = 6;
float db;
int period;
for (period = 1; period <= life + 1; period++)
{
db = imsl_f_depreciation_db (cost, salvage, life, period, month);
printf ("For period %i, db = $%.2f.\n", period, db);
}
}
Output
For period 1, db = $518.75.
For period 2, db = $822.22.
For period 3, db = $481.00.
For period 4, db = $140.69.