摘要:

Though net present value and sets of internal rates of return are completely equivalent criteria for project acceptability decisions, they collectively offer an infinite number of differing implications with regard to levels of project incomes, wealth bases and rates of return. If reinvestment is assumed, there are also sets of average rates of return, equivalent for project acceptability decisions and corresponding, one-to-one, with sets of internal rates and their implications. But the popular constant average and internal rates do not correspond in this way; thus, in general, they differ with regard to project income, wealth base and rate of return implications.

ISSN:0013-791X    

DOI:10.1080/00137919308903095

出版商:Taylor & Francis Group    

年代:1993

数据来源: Taylor

摘要:

The Payback Period is one of the most popular project evaluation criteria. As much as it is liked by practitioners as a measure of liquidity and risk exposure, it is criticized by academicians who seriously question its validity as a profitability criterion. This paper examines the classical definition of the Payback Period criterion for investment projects, and re-formulates this criterion in a way that frees it from the shortcomings of the old definition and makes it compatible with the Net Present Value criterion. It is also shown that the traditional approach to the comparison of mutually exclusive projects by means of the Payback Period criterion has been inadequate, and the proper approach to this problem is presented.

ISSN:0013-791X    

DOI:10.1080/00137919308903096

出版商:Taylor & Francis Group    

年代:1993

数据来源: Taylor

摘要:

This paper compares the United States depreciation rules, corporate income tax rates, and investment tax credits with the seven countries that have the highest direct investment from the U.S. These countries are Australia, Canada. France, Germany, Japan, the Netherlands, and the United Kingdom. For illustrative purposes, two comparative examples for computer systems and manufacturing equipment are included.

ISSN:0013-791X    

DOI:10.1080/00137919308903097

出版商:Taylor & Francis Group    

年代:1993

数据来源: Taylor

摘要:

Economic replacement models have been criticized for their inability to account for strategic factors when replacement concerns an upgrade in technology. This article distinguishes the concept of market obsolescence as an extension to replacement theory. Through the assessment of demand and price changes attributable to the employment of advanced production technologies, strategic implications of replacements can be economically evaluated. Salvage value and equipment operating costs are modeled as functions ol equipment age in traditional replacement models. Because strategic replacement involves changing demand levels, it is necessary to model salvage value and operating costs as functions of both age and cumulative equipmenl use. Two example problems demonstrate the extensions to replacement analysis.

ISSN:0013-791X    

DOI:10.1080/00137919308903098

出版商:Taylor & Francis Group    

年代:1993

数据来源: Taylor

摘要:

The purpose of this study is to expand previously published work in examining the attitudes of financial managers towards the investment tax credit. This article specifically investigates and analyzes the perceptions that financial managers have with respect to the impact of the ITC in the input allocation decisions of the firm. This research indicates that financial managers do not believe that the ITC is an important inducement to investment behavior. More importantly, the ITC does not often result in employing capital that requires hiring additional employees. However, this research indicates that there might be an important exception to this. There appears to be a marked relationship with respect to those who stated that the ITC resulted in purchasing new technology and respondents who staled that the ITC resulted in increasing employment. In limited cases, therefore, the ITC appears to lead to an expansion o1 the work lorce through capital formation.

ISSN:0013-791X    

DOI:10.1080/00137919308903099

出版商:Taylor & Francis Group    

年代:1993

数据来源: Taylor

摘要:

An optimal approach for solving serial replacement problems with uncertain rewards and a risk-averse decision maker was previously introduced by Brown. In this note, we extend Brown's model to allow rewards to be correlated across replacements. Correlation may be useful in modeling the effects of the external environment on the rewards. However, total enumeration appears to be the onty method to find optimal solutions when rewards are correlated. Thus, we develop a heuristic and compare it to several existing solution approaches. Computational results indicate that, on the average, our heuristic outperforms the best of the other approaches by about 8 percent when there is positive correlation and 11 percent when there is negative correlation.

ISSN:0013-791X    

DOI:10.1080/00137919308903100

出版商:Taylor & Francis Group    

年代:1993

数据来源: Taylor

摘要:

The conventional approach to considering working capital cash flows in capital budgeting is to omit them or include some ad hoc figures at the initiation and termination of the project. The authors argue for an endogenous system of estimating relevant working capital cash flows on a periodic basis. Otherwise, the present value of working capital cash flows is biased against the project's acceptance. Examples of calculating working capital cash flows as related to changes in annual sales are presented for three time patterns of sales and contrasted to the conventional method. An empirical study of the linear relationship of net working capital and sales revenue of 770 companies is reported, and an alternative cash flow model is offered thai includes working capilal cash flows.

ISSN:0013-791X    

DOI:10.1080/00137919308903101

出版商:Taylor & Francis Group    

年代:1993

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137919308928036

出版商:Taylor & Francis Group    

年代:1993

数据来源: Taylor