When purchasing equipment, dont forget the cost of capital
Taylor, P.
When purchasing equipment, dont forget the cost of capital - 1987 - NatWest Agricultural Digest (15) January 1987, 7-10(4) .
Efficiency is seen in terms of controlling costs rather than increasing output. It is suggested that "payback" is now probably the best technique for decisions about purchasing equipment . Essentially this means expecting an item of capital equipment to pay for itself within a specified period. The problems and possibilities of this method are considered with a worked example, and discounted payback, net present value, internal rate of return and net terminal value techniques compared.
CAPITAL COSTS
FARMING
When purchasing equipment, dont forget the cost of capital - 1987 - NatWest Agricultural Digest (15) January 1987, 7-10(4) .
Efficiency is seen in terms of controlling costs rather than increasing output. It is suggested that "payback" is now probably the best technique for decisions about purchasing equipment . Essentially this means expecting an item of capital equipment to pay for itself within a specified period. The problems and possibilities of this method are considered with a worked example, and discounted payback, net present value, internal rate of return and net terminal value techniques compared.
CAPITAL COSTS
FARMING