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Chapter 11 Using Built-in Functions in Analytic M odels

Description

The DDB functio

nreturnsthedepreciationonanassetusing the Double Declining Balance method. This

is an accelera

ted depreciation method.

Parameters

Parameter Description

Cost The cost of the asset.

Salvage The worth of the asset at the end of its useful life.

Life The number o

f periods in the asset’s useful life.

Period The period for which you wish to determine the d epreciation.

Returns

The depreciation on an asset using the Double Declining Balance method.

Example

Suppose yo

u purchase a machine for USD 6,000, and you plan to sell it for USD 500 after 5 years. You can

calculate

the depreciation for each year as follows:

• DDB(6000, 500, 5, 1) = 2400

• DDB(6000, 500, 5, 2) = 1440

• DDB(6000, 500, 5, 3) = 864

• DDB(6000, 500, 5, 4) = 518

• DDB(6000, 500, 5, 5) = 278

DEC

Syntax

DEC(Number Original Value, Number Amount to Decrement)

Description

The DEC function returns an decremented value based on an original value and the amount to increment.

Returns

An decreme

nted value based on an original value and the amount to increment.

Example

DEC(&NumM

onths, &EndMonth - &StartMonth - 1)

This formula subtracts the months between the start and end month to the variable &NumMonths.DEC

function is useful in FOR or WHILE functions to decrement loop variables.