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It is the rate to use for the declining balance. If this parameter is omitted, the VDB function will assume a factor of 2. FALSE Excel will use the straight-line depreciation method when the straight-line depreciation is greater than the declining balance depreciation amount. The Excel VDB function allows you to specify a factor to multiply the straight line depreciation by, although the function uses the Double Declining-Balance Method by default.
The Excel VDB function calculates the depreciation of an asset, using the Double Declining Balance Method, or another specified depreciation rate, for a specified period including partial periods. If the [factor] argument is omitted from the function it takes on the default value of 2 specifying the double declining depreciation method. An optional logical argument that specifies whether the method should switch to straight line depreciation when depreciation is greater than the declining balance calculation.
Previous Page Print Page. Save Close. Dashboard Logout. The value at the end of the depreciation sometimes called the salvage value of the asset.
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