LONG TERM CREDIT FOR SHORT TERM NEEDS: BAD NEWS

DR. JAMES R. RATLIFF, PROFESSOR OF ACCOUNTING AT NEW YORK UNIVERSITY, OBSERVES THAT ACCOUNTING AS RELATED TO CONSTRUCTION IS A VERY SUBJECTIVE THING; HE RECOMMENDS KEEPING THREE SETS OF BOOKS FOR TAX SAVINGS ON DEPRECIATION (ONE EACH FOR GOVERNMENT, SHARE HOLDERS, AND MANAGEMENT). ALSO DISCUSSED ARE: (1) LEASING; (2) PRESENT VALUE; (3) INVESTMENT TAX CREDIT; (4) COST OF CAPITAL. WARD M. HARRELL, PRESIDENT OF PLANIN MACHINERY COMPANY, DISCUSSES RENTING HEAVY EQUIPMENT FROM THE POINT OF VIEW OF THE COMPANY LEASING OUT EQUIPMENT. RONALD H. ZECH, LEASING OFFICER WITH FIRST CHICAGO LEASING CORP., DISCUSSES TAX BENEFITS OF A CONDITIONAL SALE; SHORT-AND LONG TERM FINANCING; RAISING CAPITAL. ROBERT V. RIEKER, MANAGER OF MARKETING RELATIONS AT GENERAL ELECTRIC CREDIT CORP., DISCUSSES LOANS FOR EQUIPMENT. PAUL O'BRIEN, FACULTY MEMBER OF THE SCHOOL OF BUSINESS OF THE UNIVERSITY OF ILLINOIS (CHICAGO) STATES THAT THERE ARE TWO WAYS TO EVALUATE THE CHOICE OF EQUIPMENT IN TERMS OF GAIN OR LOSS: PAYBACK AND BAILOUT ANALYSES. AN EXAMPLE IS GIVEN TO DEMONSTRATE THE UTILITY OF EACH APPROACH.

• Publication Date: 1974-6

Media Info

• Features: Tables;
• Pagination: p. 19-20
• Serial:
  • Construction Equipment
  • Volume: 49
  • Issue Number: 7

Subject/Index Terms

• TRT Terms: Alternatives analysis; Construction equipment; Costs; Economic analysis; Expenditures; Finance; Financing; Leasing; Taxation
• Old TRIS Terms: Financial expenditures
• Subject Areas: Economics; Finance; Highways; Vehicles and Equipment;

Filing Info

• Accession Number: 00219519
• Record Type: Publication
• Files: TRIS
• Created Date: Jul 31 1974 12:00AM