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  USA  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

Filing Info

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