Example: Depreciation - Double-Declining Balance Method
The depreciation of an asset with an initial cost of $2500 and a salvage value of $500 over a period of 2 years is calculated. A factor of 2 is used (the double-declining balance method).
import com.imsl.finance.*;
import java.text.NumberFormat;
public class ddbEx1 {
public static void main(String args[]) {
double cost = 2500;
double salvage = 500;
double factor = 2;
int life = 24;
for (int period = 1; period <= life; period++) {
double ddb = Finance.ddb(cost, salvage, life, period, factor);
System.out.println("For period "+period+" ddb = " +
NumberFormat.getCurrencyInstance().format(ddb));
}
}
}
Output
For period 1 ddb = $208.33
For period 2 ddb = $190.97
For period 3 ddb = $175.06
For period 4 ddb = $160.47
For period 5 ddb = $147.10
For period 6 ddb = $134.84
For period 7 ddb = $123.60
For period 8 ddb = $113.30
For period 9 ddb = $103.86
For period 10 ddb = $95.21
For period 11 ddb = $87.27
For period 12 ddb = $80.00
For period 13 ddb = $73.33
For period 14 ddb = $67.22
For period 15 ddb = $61.62
For period 16 ddb = $56.48
For period 17 ddb = $51.78
For period 18 ddb = $47.46
For period 19 ddb = $22.09
For period 20 ddb = $0.00
For period 21 ddb = $0.00
For period 22 ddb = $0.00
For period 23 ddb = $0.00
For period 24 ddb = $0.00
Link to Java source.