depreciationSyd¶

Evaluates the depreciation of an asset using the sum-of-years digits method.

Synopsis¶

depreciationSyd (cost, salvage, life, period)

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.

Return Value¶

The sum-of-years digits depreciation of an asset for a specified period. If no result can be computed, NaN is returned.

Description¶

Function depreciationSyd computes the sum-of-years digits depreciation of an asset for a specified period.

It is computed using the following:

\[\left(\mathit{cost}-\mathit{salvage}\right)\left(\mathit{period}\right) \frac{\left(\mathit{life}+1\right)\left(\mathit{life}\right)}{2}\]

Example¶

In this example, depreciationSyd computes the depreciation of an asset, which costs $25,000 initially, lasts 15 years and a salvage value of $5,000, for the $14^{th}$ year.

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

cost = 25000
salvage = 5000
life = 15
period = 14

depreciation_syd = depreciationSyd(cost, salvage, life, period)
print("The depreciation allowance for the 14th year is $%.2f."
      % (depreciation_syd))

Output¶

The depreciation allowance for the 14th year is $333.33.