摘要:

The controversy chat exists in rate-hearing cases can be partially attributed to participants assuming theoretical compatibility between various cost of capital models, when in fact, equivalence assumptions are unsupportable. Using the traditional model, the capital asset pricing model, and the Modigliani and Miller cost of capital model, the authors show equivalency exists only under certain conditions of no change in business risk and financial risk. Unless these conditions hold, the cost of capital calculated using any of these three models is wrong. The authors derive a generalized cost of capital model.

ISSN:0013-791X    

DOI:10.1080/00137918908902986

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

摘要:

Despite the theoretical superiority of the net present value concept, the simple payback procedure continues as a most important capital budgeting technique because of its substantial intuitive appeal (i.e.. it tells how long it takes to pay for an investment). The paper proposes a generalized time-adjusted payback decision rule which is theoretically consistent with the assumptions of the net present value capital budgeting technique, yet phrased in terms that practitioners may find more understandable.

ISSN:0013-791X    

DOI:10.1080/00137918908902987

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

摘要:

This paper integrates learning theory and the conventional theory of production to obtain a cost function in which total costs ore a function ofcumulativeoutput as well as the firm'srateof output. The theory implies that marginal costs are adecreasingfunction ofcumulativeoutput (via learning). The relationship between marginal costs and therateof output depends on returns to scale. The theory is tested using proprietary data covering a fifteen year period on the annual rate of output, cumulative output, and costs of radar “platform” produced by an anonymous defense contractor.

ISSN:0013-791X    

DOI:10.1080/00137918908902988

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

摘要:

High energy efficiency and special low-cost races make cogeneration an attractive energy production method. Large cogeneration units have proven economic for many applications. Here we report a case study on the profitability of a small, gas fired. 4 kW packaged cogenerator in a home or small business to heat hot water and generate electricity. A sensitivity analysis shows results for the following variables: initial cogenerator cost, cogenerator efficiency, cogenerator life. number of hours per day of operation, amount of electricity sold back to the utility, electricity sellback prices, natural gas prices, maintenance costs, depreciation versus expensing, and incremental tax rates. Rate of return and payback period results ore reported as a function of these variables for a 4 kW cogenerator. At an overall efficiency of 72%, an initial cogenerator cost of $4.000 and a cogenerator life of 25.000 running hours, investing in the cogenerator gives a 2.4 year payback period.

ISSN:0013-791X    

DOI:10.1080/00137918908902989

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

摘要:

Linear Programming Formulations of capital budgeting under conditions of pure capital rationing frequently assume that the dual variables of the budget constraints muse be equal to the corresponding discount factors. This paper shows that this assumption leads to solutions in which the maximum objective function is zero. From this it follows that the dual variables of the budget constraints are zero for this case as well as for that where lending or carryforward is Included.

ISSN:0013-791X    

DOI:10.1080/00137918908902990

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137918908902991

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137918908902992

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137918908914799

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137918908914800

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137918908927984

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor