depreciationDdb¶

Evaluates the depreciation of an asset using the double-declining balance method.

Synopsis¶

depreciationDdb (cost, salvage, life, period, factor)

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 greater than life.
float factor (Input): Rate at which the balance declines. factor must be positive.

Return Value¶

The depreciation of an asset using the double-declining balance method for a period specified by the user. If no result can be computed, NaN is returned.

Description¶

Function depreciationDdb computes the depreciation of an asset using the double-declining balance method for a specified period.

It is computed using the following:

\[[\mathrm{cost} - \mathrm{salvage}(\text{total depreciation from prior periods})] \left(\frac{\mathit{factor}}{\mathit{life}}\right)\]

Example¶

In this example, depreciationDdb computes the depreciation of an asset, which costs $2,500 initially, lasts 24 periods and a salvage value of $500, for each period.

from __future__ import print_function
from numpy import *
from pyimsl.math.depreciationDdb import depreciationDdb

cost = 2500
salvage = 500
factor = 2
life = 24

for period in range(1, life + 1):
    ddb = depreciationDdb(cost, salvage, life, period, factor)
    print("For period %i, ddb = $%.2f." % (period, 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.