306 NATURE OF CAPITAL AND INCOME [Cmar. XVII 
will normally be at the zero point at both ends. This 
is shown in Figure 16. Such a curve shows the normal 
cycle of capital-value from the moment when the article 
of capital is first utilized to the moment when it is ex- 
  
  
Fra. 15. 
hausted. It is “normal” in the sense that the income is 
just sufficient to compensate for the outlay, no more and 
no less, and that usually the principal items of outgo all 
occur in the early part of the cycle, and the principal 
items of income all accrue in the latter part. In such a 
  
  
  
  
  
A 
Fic. 16. 
normal curve the capital-value (AB in Fig. 16) at any 
moment may be said to represent two things: first, it rep- 
resents the discounted value of the future expected income 
(less that of future expected outgo, if any); and, secondly,