The nature of capital and income

Bibliographic data

Monograph

Identifikator:: 102659555X

URN:: urn:nbn:de:zbw-retromon-82920

Document type:: Monograph

Author:: Fisher, Irving http://d-nb.info/gnd/118533541

Title:: The nature of capital and income

Place of publication:: New York

Publisher:: The Macmillan Company

Year of publication:: 1923

Scope:: XXI, 427 Seiten

Digitisation:: 2019

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part III. Capital and income

Collection:: Economics Books

Skc. 2] VALUE OF CAPITAL 205 exchange.” Still another application is to wealth which is in course of trade and of which, therefore, the only service to the owner consists in its sale. It is on this principle that a dealer reckons the value of his stock, by discount- ing its selling price for the time which will probably elapse before it is sold — deducting, of course, the prospective expense of selling, discounted in like manner. Similarly, the value of any article of wealth reckoned when that wealth is in course of construction is the present value of what it will bring when completed, less the present value of the cost of completion. For instance, the maker of an auto- mobile will appraise it, at any of its stages in course of construction, as worth the discounted value of its probable return when subsequently finished and sold, less the dis- counted value of the costs of construction and selling which still remain. Of course, the element of risk cannot, in such cases, be overlooked; but its consideration belongs to a later chapter. Another application of these principles of capitalization is to goods in transit. A cargo leaving Sydney for Liv- erpool is worth the discounted value of what it will fetch in Liverpool, less the discounted value of the cost of carry- ing it there. Other classical examples are wine, the value of which is the present worth of what it will be when “mellow” and ready for consumption; and young forests, which are worth the discounted value of the lumber they will ultimately form. In Germany and some other coun- tries, such appraisement of forests is now worked out with considerable precision. §3 Tt seldom happens, however, that there is one item only of income or outgo earned by an article of capital. The items are unusually numerous. Perpetual annuities, for in- stance, form an important class, in which these items recur in equal amounts and during equal intervals forever. We

Access restriction

Copyright

fullscreen: The nature of capital and income

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation