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Ingenieria Economica Blank Y Tarquin 5ta 142

Ingenieria Economica Blank Y Tarquin 5ta 142

Ingenieria Economica Blank Y Tarquin 5ta 142




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Ingenieria Economica Blank Y Tarquin 5ta 142


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Ingenieria Economica Blank Y Tarquin 5ta 142. ingenieria economica blank y tarquin 5ta 142
. ingenieria economica blank y tarquin 5ta 142

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Ingenieria Economica Blank Y Tarquin 5ta 142
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Ingenieria Economica Blank Y Tarquin 5ta 142
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Ingenieria Economica Blank Y Tarquin 5ta 142

The purpose of this chapter is to introduce students to the process of Capitalization as it applies to the production of capital stock, components, and depreciation. This chapter is not a complete coverage of Capitalization. It is rather a primer that enables the student to make contact with the Capitalization concept. The student will be introduced to two Approaches to the analysis of Capitalization, the Capital Asset Approach and the Gross Investment Approach. The Capital Asset Approach will be used to determine the Fund Rate. The approach applied will vary according to each case, depending on the particular situation being analyzed. For example, for the determination of the Fund Rate the amount of capital involved should be determined. For the total cost of assets the applicable rate should be used.

The Capital Asset Approach is applied as follows:

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Effectively the Capital Asset Approach is the application of the Fund Rate to the capital involved to arrive at the “Fund Rate”.

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The Capital Asset Approach is used to obtain the Fund Rate.

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Capital is allocated according to the Fund Rate.

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The Fund Rate is used as a standard measure of the amount of capital to be invested.

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Costs are allocated according to the Fund Rate.

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ingenieria economica blank y tarquin 5ta 142 · 8th Edition, ISBN                                                                                                                                                                                                                                                      
3e33713323


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