Modern Finance DepreciationDoubleDeclining

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DepreciationDoubleDeclining

Returns one period's expense at twice the straight-line rate, never below salvage.

Syntax

DepreciationDoubleDeclining( terms, period )

Examples

#import "std/money"
using money

'' Declining balance at twice the straight-line rate.  It IGNORES
'' RateFactor_ and forces 2 -- otherwise "double" would be a lie whenever
'' the field had been set.
dim as DepreciationTerms t = DepreciationTermsMake( DecimalParse( "50000" ).Value( ), _
                                                    DecimalParse( "5000" ).Value( ), 7 )

print DepreciationDoubleDeclining( t, 1 ).Value( ).ToStringFixed( 2 )    '' 14285.71
print DepreciationDoubleDeclining( t, 2 ).Value( ).ToStringFixed( 2 )    '' 10204.08

t.RateFactor_ = DecimalParse( "1.5" ).Value( )
print DepreciationDoubleDeclining( t, 1 ).Value( ).ToStringFixed( 2 )    '' 14285.71

'' THE SALVAGE FLOOR IS ABSOLUTE: once the book value reaches salvage the
'' expense is exactly zero, never a small residue and never negative.
dim as DepreciationTerms a = DepreciationTermsMake( DecimalParse( "10000" ).Value( ), _
                                                    DecimalParse( "2000" ).Value( ), 5 )
print DepreciationDoubleDeclining( a, 4 ).Value( ).ToStringFixed( 2 )    '' 160.00
print DepreciationDoubleDeclining( a, 5 ).Value( ).IsZero( )             '' true

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Library: Finance
Category: Finance
Documented under: Nothing Becomes A Keyword
Source: pkg/std/money/findeprec.tiko in the tiko repository.