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Subject: Re: [office-formula] DB question
On Wed, 2009-12-23 at 08:04 -0500, Patrick Durusau wrote: > On the DB function, what is the purpose of the various formulas for > other aspects of depreciation? I am not sure which "formulas for other aspects of depreciation" you are referring to. The first formula describes how "rate" is calculated. "rate" is used in the following formulae. The next 3 formulae together give a recursive definition of "value" (iniital "value", "value" progression during lifetime, "value" for period following lifetime.) The last two formulae finally describe how DB is calculated from "value". Of course this could all be combined into a single large formula involving some large summations (and some encoding for the required rounding of the "rate"), but I think the current presentation is much more understandable (and verifiable). > > Are these normative or simply instructive for the curious or bored? Clearly these formulae are meant to be normative. In fact we should have similar formulae for all other financial functions. It is such formulas which truly define what these functions ought to return. Andreas > -- Andreas J. Guelzow Concordia University College of Alberta
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