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VDB Depreciation Question
Hi All,
I understand that if you set the no_switch argument of the VDB function to false, your calculation will switch to straight line (SLN) once SLN is greater than the declining balance. However, I cannot seem to get this to work. By way of example: =SLN(2400,300,10) equates to 210 of depreciation expense per year (for ten years). =VDB(2400,300,10,0,1,2,FALSE) equates to the following depreciation expenses per year: Year 1 480.00 Year 2 384.00 Year 3 307.20 Year 4 245.76 Year 5 196.61 Year 6 157.29 Year 7 125.83 Year 8 100.66 Year 9 80.53 Year 10 22.12 My question is why doesn’t this formula switch to straight-line in year 5 when the VDB balance is obviously less than straight-line???? Any guidance would be much appreciated! Kevin |
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