Determining Depreciations As A Two-Stage Problem
Within the framework of a hierarchical model, the paper determines depreciation rates for exhaustible facilities. It hierarchically integrates an investment model with a production model combining the tactical investment calculus with the operational cost accounting level. Using the anticipation procedure of hierarchical planning, depreciation rates, as part of the contribution margin of the operational production model, influence the anticipated cash flow of the net present value (NPV) criterion of the investment level. Hence, using a two-stage procedure depreciation rates are determined as NPV-optimal cost parameters. The paper fully accounts for a stochastic environment and compares numerically the two stage cost evaluation with linear depreciations.
Volume (Year): 53 (2001)
Issue (Month): 2 (April)
|Contact details of provider:|| Postal: Geschwister-Scholl-Platz 1, 80539 Muenchen|
Phone: 0049 89 2180 2166
Fax: 0049 89 2180 6327
Web page: http://www.sbr-online.com
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sbr:abstra:v:53:y:2001:i:2:p:66-81. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (sbr)
If references are entirely missing, you can add them using this form.