Financial Toolbox

Depreciation

The toolbox includes functions to compute standard depreciation schedules: straight line, general declining-balance, fixed declining-balance, and sum of years' digits. Functions also compute a complete amortization schedule for an asset, and return the remaining depreciable value after a depreciation schedule has been applied.

This example depreciates an automobile worth $15,000 over five years with a salvage value of $1,500. It computes the general declining balance using two different depreciation rates: 50% (or 1.5), and 100% (or 2.0, also known as double declining balance). Enter

• Decline1 = depgendb(15000, 1500, 5, 1.5)
  Decline2 = depgendb(15000, 1500, 5, 2.0)
  

which returns

• Decline1 =
         4500.00       3150.00       2205.00       1543.50       2101.50
  Decline2 =
         6000.00       3600.00       2160.00       1296.00        444.00
  

These functions return the actual depreciation amount for the first four years and the remaining depreciable value as the entry for the fifth year.

Present or Future Values

Annuities