352 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28

Assuming that the expenditures required to maintain existing
 reproducible capital in a usable state amont to one-third
of total annuel investment, and that the average amortisation
period for these outlays is 214 years, it is easy to arrive at
the following table (1).

TABLE II

+

[Inventories . . .
Repair and maintenance
 . . - .
Equipment (1) . . |
structures () . .

‘22.3

73.0
317.6 |
486.8

Total . | 1T1Q0.7

Equipment and!
Structures . . .]

[077.4

Equipment and
Structures (Y) . .|1004.4

R

174.0

2G.2
31.8
27.5

262.1

R8.4

oz |

C/Re

0.70

2.5
Io
25

1.56 |

12.18

6 gb

C | Re
a % mn %

10.2

66.4

6.1
26.5
R7.2

11.1
12.1
10.4

roo

|

TOO

Ra 8

22.6

83.7 |

22.5

(!) Non-amortised value of initial installations, excluding the value of
anv repair and maintenancv charges incorporated.

maintenance outlays represent 1/3 of total annual investment, the amortisation
 period would decline from 17 to 12 years approximately.
It can be seen from this calculation how much interest would attach to
availability of estimates of the sums required to maintain reproduction
capital in functioning order.
() In allowing for repair and maintenance outlays, the elements of Re
which correspond to equipment and structural assets respectively in Table 10
pecome 34.1 (I—#) and 29.5 (1—#), so that the share of the value of fixed
capital accounted for by repair and maintenance outlavs becomes
[T0 x 34.1+25 x 29.5] # =1077.4 x.
The corresponding share of Rg is 1077.4 x/®’, where ©’ is average amorrisation
 period for repair and maintenance outlavs. If K is the percentage

11] Allais - pag. 156