Finance in Excel 5 - Calculate Declining Balance Method of Depreciation in Excel

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Learn how to calculate an asset's depreciation amount in Excel using the Declining Balance Method. This tutorial shows you how to use the Declining Balance Method of depreciation in order to calculate the depreciation amount of an asset over its useful lifetime. This is the second tutorial on depreciation. Also, you will learn the main shortcoming of this method, which is that if the salvage value of the asset is $0 at the end of its life, the function will depreciate the entire cost of the asset in year 1 or in year 1 and 2 depending on the arguments used. This tutorial in Excel uses the DB() function.

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