Contents xxvii
Economy of Replacing an Asset with an Improved
Model ................................................................. 9.38Economy of Replacement under Continuing
Improvements .................................................... 9.40Economy of Replacement on After-Tax Basis .............. 9.42Effects of Inflation ................................................................. 9.43
Determination of Replacement Cost with Constant
Inflation Rate ...................................................... 9.43Determination of Replacement Cost with Variable
Inflation Rate ...................................................... 9.43Present Worth of Costs in Inflationary Period ............... 9.44Cost Comparison with Anticipated Inflation .................. 9.45Endowment with Allowance for Inflation ....................... 9.46Evaluation of Investments .................................................... 9.46
Premium-Worth Method of Investment Evaluation ........ 9.46Valuation of Corporate Bonds ...................................... 9.48Rate of Return on Bond Investment ............................. 9.48Investment-Rate Calculation as Alternative to
Annual-Cost Calculation ..................................... 9.49Allocation of Investment Capital ................................... 9.49Allocation of Capital to Two Investments with
Variable Rates of Return .................................... 9.51Allocation of Capital to Three Investments by
Dynamic Programming ....................................... 9.52Economic Level of Investment ..................................... 9.54Relationship between Before-Tax and After-Tax
Investment Rates ............................................... 9.55Apparent Rates of Return on a Continuing
Investment ......................................................... 9.56True Rate of Return on a Completed Investment ......... 9.57Average Rate of Return on Composite Investment ....... 9.57