Puzzled by values returned by the function depsoyd(Cost, Salvage, Life) from Financial Toolbox when Life is fractional
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I am puzzled by the values returned by depsoyd(Cost, Salvage, Life) from Financial Toolbox when Life is fractional.
>> dep = depsoyd(13000,1000,2.5)
dep =
1.0e+03 *
6.857142857142857 4.114285714285714
Here the depreciation amounts do not sum to 13000 - 1000 = 12000 as I was expecting, summing instead 10971.42857142857. Would appreciate very much any clarification about how these depreciation values are been computed. Many thanks in avance!
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