摘要:

This paper Identifies situations in which the widely recommended procedures for evaluating mutually exclusive projects with unequal lives may result in incorrect project rankings. These situations arise from the failure of conventional techniques to place alternatives on an appropriate equivalent-risk basis and may occur whether a net present value or equivalent annual annuity approach is utilized. We develop alternative discounted cash flow procedures which correctly reflect the nature of risk. In so doing, we address the following important issues: 1) the choice of the discount rate to be used in calculating the net present value of a series of replications of a project: 2) the choice of a discount rate for calculating the equivalent annual annuity for a series of replications: and 3) the selection of an appropriate common-life horizon for comparison of alternative projects.

ISSN:0013-791X    

DOI:10.1080/00137918908902980

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

摘要:

We give a method for computing depreciation schedules that reflect the underlying economic value of equipment. In the presence of taxes, these economic depreciation schedules depend on several factors. Including the depreciation schedules imposed by government. If the resulting economic depreciation schedule offers quicker write-offs than the imposed one, the firm could argue that, based on economic rationale, the imposed schedule should be changed to equal the economic schedule. We show the existence of an imposed schedule that equals the resulting economic schedule, and hence is termed “stable”. We also show that stable depreciation schedules are tax neutral (for a range of tax rates) In that the replacement decision is not changed by the tax system.

ISSN:0013-791X    

DOI:10.1080/00137918908902981

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

摘要:

In this paper classical mathematical techniques are first used to derive conditions where any interest rate will result in present value rankings between two investment projects, and then a new technique, time dominance, is applied to the ranking situation. In many cases the new procedure only results In the same ranking as with the classical mathematical methods, but sufficient new cases are derived to make the new technique a useful addition to the analyst's tool set.

ISSN:0013-791X    

DOI:10.1080/00137918908902982

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

摘要:

The paper examines changes in selected capital budgeting practices over eleven years in 100 large corporations and whether these changes improve Investment decision-making. Significant increases in the use of sophisticated techniques were found, together with a significant positive association between the application of these practices and managers' assessments of capital budgeting effectiveness. Reasons for these findings are discussed.

ISSN:0013-791X    

DOI:10.1080/00137918908902983

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137918908902984

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137918908902985

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137918908914797

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137918908914798

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor