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 ).
- Originally published in The Engineering Economist, Summer, 1967, revised May 1970.
University of Michigan, Ann ArborDepartment of Naval Architects and Marine Engineers
Ann Arbor, MI USA 48109
- Mosvold, Karl
- Benford, Harry
- Publication Date: 1970-5
- Features: Figures; Tables;
- Pagination: 18 p.
- Issue Number: 085
- TRT Terms: Depreciation; Life cycle costing; Ships; Vehicle design
- Uncontrolled Terms: Ship design
- Subject Areas: Design; Finance; Marine Transportation; Vehicles and Equipment;
- Accession Number: 00007021
- Record Type: Publication
- Files: TRIS
- Created Date: Nov 25 1973 12:00AM