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. Capital-value when alternative income streams are possible . 221
. Capital-value of a group of articles . . . . . . 223
. General conclusion . : : b : . . ‘ . 223
CHAPTER XIV
EArNINGS AND INCOME J
. Capital-value less than total anticipated income . . L227 J
. Effect of a change in the rate of interest : . . . 229 1
. Value-return may be greater or less than rate of interest . 229
. Standard or earned income vs. realized income . : . 231
. Increase of capital equals excess of earnings over income . 236
. A depreciation fund as a means of standardizing income . 238
. Sinking funds . . . : . : . 243
. Other devices for soning: income reulat . : . 244
. The device of keeping a large stock of BSanents . . 246
. Savings are not a part of realized income : ; ’ . 247
Imaginary case of three brothers . . . . . . 249 4
An ‘“‘income’’ tax on the three brothers . ' . 250 i
A misconceived income tax affects the use of capital . . 253 i
To consider * savings ’’ income confuses capital and income . 254
CHAPTER XV
CAPITAL AND INCOME ACCOUNTS
. Capital and income accounts when items recur regularly. . 266
- Case in which repairs occur at long intervals . . . . 257
The same, when there is a repair fund but no repairs as yet . 259
- The same, when repairs actually occur . : . . . 281
. Extraordinary increases or decreases . . . : . + 263
. Conclusion ‘ . . . 264
CHAPTER XVI
Tae Risk ELEMENT
. Subjective nature of chance . 3 . . : . . 265
. Definition of chance . . . : . . 269
. Risk as applied to the rate of foterest . . 271
. Same, in case future income is dependent on rate of Tuberott 273
- Risk as applied to immediate income . . 205
. ‘““Riskless,” “mathematical,” and ‘‘ commercial *’ valuds . 276
. Capital-value of a risky bond . ; . 277 Ji
. Riskless, mathematical, and commercial rates of Iiterent . 279
. Inverse case, where instead of risk of loss there is chance of gain
ANALYTICAL TABLE OF CONTENTS xvii
