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.