THE PRESENT VALUE OF CASH FLOW GENERATED UNDER THE DOUBLE-DECLINING-BALANCE METHOD WITH SWITCHING TO THE STRAIGHT-LINE METHOD—A PADAGOGIC NOTE

Abstract

The purpose of the note is to present a compute generated precision graph by means of which the present value of cash flow attributable to depreciation under the Double-Declining-Balance method with switching to the Straight-Line method can be efficiently evaluated. The approach to be proposed here will be of great value under pedagogical settings where the use of a computer is not desirable from an instructional viewpoint.