Valuation, depreciation and the rate base

Bibliographic data

Monograph

Identifikator:: 174667931X

URN:: urn:nbn:de:zbw-retromon-119897

Document type:: Monograph

Author:: Grunsky, Carl Ewald http://d-nb.info/gnd/10180959X

Title:: Valuation, depreciation and the rate base

Edition:: 2. ed., revised and extended

Place of publication:: New York

Publisher:: Wiley

Year of publication:: 1927

Scope:: X, 500 Seiten

Digitisation:: 2021

Collection:: Economics Books

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter I. Introduction and general notes

Collection:: Economics Books

INTRODUCTION AND GENERAL NOTES these installments may be, the canal will ultimately be paid for, in part at least, by foreign people. And if interest only is covered by the toll charges, then this Nation will stand in the position of having made a loan to the commercial interests of the world of $375,000,000 for the construction of the canal. Once the fundamental principle has been adopted relating to the extent to which commerce shall recoup the United States for its outlay and the question has been settled as to whether the users of the canal shall pay interest on the investment, the question of operating expenses will have to be taken up. Salaries, wages, materials and supplies are readily determinable. All expenditures for repairs and upkeep will be included with per- haps no difficulty until the question of depreciation is to be con- sidered. Shall each element or class of elements be considered sepa- rately, according to probable useful life, and some sum be set aside which together with interest thereon will replace the worn- out parts, or shall the amount to be set apart for replacements be determined directly from the relation of probable life to the cost of replacement of each perishable part by setting apart an- nually such a fraction of the cost that these annual increments, without interest, added together will be equal to the cost, or finally shall provision be made from year to year for the re- placements that will probably have to be made in each year? It is hoped that what is presented in this volume may prove of some assistance in the solution of problems of this character. Unprofitable Expenditures and Early Losses. — Unprofitable and unproductive expenditures which may be the results of mistakes or of accidents and early losses in the business are elements which should not be regarded as adding value to a property. They belong in some measure to the hazards of the business. They are, nevertheless, to be taken into account when rates are to be fixed because they usually represent legiti- mate expenditures. They represent an outlay which in nearly every case would have been incurred under consent of the rate- payer, if the owner had been acting as the agent for the rate- 0

Access restriction

Copyright

fullscreen: Valuation, depreciation and the rate base

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation