depreciationVdb¶

Evaluates the depreciation of an asset for any given period using the variable-declining balance method.

Synopsis¶

depreciationVdb (cost, salvage, life, start, end, factor, sln)

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 start (Input): Starting period in the calculation. start cannot be less than 1; or greater than end.
int end (Input): Final period for the calculation. end cannot be greater than life.
float factor (Input): Rate at which the balance declines. factor must be positive.
int sln (Input): If equal to zero, do not switch to straight-line depreciation even when the depreciation is greater than the declining balance calculation.

Return Value¶

The depreciation of an asset for any given period, including partial periods, using the variable-declining balance method. If no result can be computed, NaN is returned.

Description¶

Function depreciationVdb computes the depreciation of an asset for any given period using the variable-declining balance method using the following:

If sln =0

\[\sum_{i=\mathit{start}+1}^{\mathit{end}} ddb_i\]

If sln ≠ 0

\[A + \sum_{i=k}^{\mathit{end}} \frac{\mathrm{cost} - A - \mathit{salvage}}{\mathit{end} - k + 1}\]

where $ddb_i$ is computed from depreciationDdb for the i-th period. k =the first period where straight line depreciation is greater than the depreciation using the double-declining balance method $A=\sum_{i=\mathit{start}+1}^{k-1} ddb_i$.

Example¶

In this example, depreciationVdb computes the depreciation of an asset between the $10^{th}$ and $15^{th}$ year, which costs $25,000 initially, lasts 15 years and has a salvage value of $5,000.

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

cost = 25000
salvage = 5000
life = 15
start = 10
end = 15
factor = 2.0
sln = 0

vdb = depreciationVdb(cost, salvage, life,
                      start, end, factor, sln)
print("The depreciation allowance between the 10th and 15th", end=' ')
print("year is $%.2f." % (vdb))

Output¶

The depreciation allowance between the 10th and 15th year is $976.69.