Suc. 3) SUMMARY OF PART III "309, 
it represents the accumulated value of past outgo (less that 
of past income, if any). From this it follows that the 
value of the capital AB is, on the one hand, less than 
the future total income which it represents, and greater 
than the past outgo. This capital-value may be regarded 
as made up of the elements b, b’, b'”, which are respec- 
tively the discounted values of the respective larger mag- 
nitudes a, a’, a”; and, on the other hand, as made up of 
al 
  
  
A 
Fic. 17. 
b'"' bv, b”, which are the accumulated values of the respec- 
tive smaller magnitudes a'’’, a", a”. By putting together 
the elements of which AB is composed, we see, on the one 
hand, that AB is less than the anticipated income and 
greater than the past outgo; and consequently, a fortiort, 
that the past outgo is less than the future income. Kor 
the sake of simplicity in our illustration, we have chosen a 
point of time after all the outgo and before any of the in- 
come has accrued ; but the same principles could be worked 
out upon such a diagram, nO matter what point of time were 
chosen. In other words, in the normal case the value of any 
capital is intermediate between the value of its past cost 
of production or acquisition and the value of its future 
income.