RETURNS BEFORE AND AFTER TAX USING SUM-OF-YEARS-DIGITS DEPRECIATION

The sum-of-the-years depreciation method complicates the relationship between the before- and after-tax returns. This paper explains the mechanics of the SYD method and develops a procedure for analyzing its influence on the overall levels of profitability. The computer is used in a parametric analysis culminating in a series of curves that can simplify the calculations in practice. In these curves, returns are made non-dimensional by dividing by the investment, the ratio being the capital recovery factor ( CR ).

• Supplemental Notes:
  • Originally published in The Engineering Economist, Summer, 1967, revised May 1970.
• Corporate Authors:

  University of Michigan, Ann Arbor

  Department of Naval Architects and Marine Engineers
  Ann Arbor, MI  United States  48109
• Authors:
  • Mosvold, Karl
  • Benford, Harry
• Publication Date: 1970-5

Media Info

• Features: Figures; Tables;
• Pagination: 18 p.
• Serial:
  • Issue Number: 085

Subject/Index Terms

• TRT Terms: Depreciation; Life cycle costing; Ships; Vehicle design
• Uncontrolled Terms: Ship design
• Subject Areas: Design; Finance; Marine Transportation; Vehicles and Equipment;

Filing Info

• Accession Number: 00007021
• Record Type: Publication
• Files: TRIS
• Created Date: Nov 25 1973 12:00AM