Returns the depreciation of an asset using the fixed-declining balance method.

Namespace: Imsl.Finance
Assembly: ImslCS (in ImslCS.dll) Version: 6.5.0.0

Syntax

C#
public static double Db(
	double cost,
	double salvage,
	int life,
	int period,
	int month
)
Visual Basic (Declaration)
Public Shared Function Db ( _
	cost As Double, _
	salvage As Double, _
	life As Integer, _
	period As Integer, _
	month As Integer _
) As Double
Visual C++
public:
static double Db(
	double cost, 
	double salvage, 
	int life, 
	int period, 
	int month
)

Parameters

cost
Type: System..::.Double
A double which specifies the initial cost of the asset.
salvage
Type: System..::.Double
A double which specifies the salvage value of the asset.
life
Type: System..::.Int32
A int which specifies the number of periods over which the asset is being depreciated.
period
Type: System..::.Int32
A int which specifies the period for which the depreciation is to be computed.
month
Type: System..::.Int32
A int which specifies the number of months in the first year.

Return Value

A double which specifies the depreciation of an asset for a specified period using the fixed-declining balance method.

Remarks

Method Db varies depending on the specified value for the argument period, see table below.

If period = 1,

{\rm{cost}} \times {\rm{rate}} \times {{{\rm{month}}} \over {12}}

If period = life,

\left( {{\rm{cost}} - {\rm{total}}\,{\rm{depreciation}}\,{\rm{from}}\,{\rm{periods}}} \right) \times {\rm{rate}} \times {{12{\rm{ - month}}} \over {12}}

If period other than 1 or life,

\,\left( {{\rm{cost}} - {\rm{total}}\,{\rm{depreciation}}\,{\rm{from}}\, {\rm{prior periods}}} \right) \times rate

where

\,rate\, = 1 - \left( {{{{\rm{salvage}}} \over {{\rm{cost}}}}} \right)^{\left( {{1 \over {life}}} \right)}

NOTE: rate is rounded to three decimal places.

See Also