Journal of Business
Опубликовано на портале: 11-11-2004Myron J. Gordon Journal of Business. 1955. Vol. 28. No. 4. P. 253-260.
The major conclusions reached by the analysis may be summarized as follows: First, the reciprocal of the payoff period is in fact an estimate of a proposal's rate of profit. Second, when a proposal's life is greater than its postlax payoff period , the reciprocal of the payoff period provides the best short-cut estimate of its rate of profit; and, when a proposal's life is less than its postlax payoff period , the average investment formula provides the better short-cut estimate of its rate of profit. The error in the two formulas is found by comparing them with present-value formula, which provides a proposal's true rate of profit. The third conclusion is that the Terborgh formula provides an index of the profitability of an investment proposal that has serious limitations in the purpose for which it is intended.
Three Problems in Rationing Capital [статья]
Опубликовано на портале: 12-11-2004James H. Lorie, Leonard J. Savage Journal of Business. 1955. Vol. 28. No. 4. P. 229-239.
Corporate executive face three tasks in achieving good financial management. The first is largely administrative and consist in finding an efficient procedure for preparing and reviewing capital budgets, for delegating authority and fixing responsibility for expenditures, and for finding some mcans for altimate evaluation of completed investments. The second task is to forecast correctly the cash flows that can be expected to result from specified investment proposals, as well as the liquid resources that will be available for investment. The third task is to ration available capital or liquid resources among competing investment opportunities. This article is concerned with only this last task; it discusses three problems in the rationing of capital, in the sense of liquid resources.