Determining Depreciations As A Two-Stage Problem

Rüdiger Eichin and Christoph Schneeweiss

Schmalenbach Business Review (sbr), 2001, vol. 53, issue 2, 66-81

Abstract: Within the framework of a hierarchical model, the paper determines depreciation rates for exhaustible facilities. It hierarchically integrates an investment model with a production model combining the tactical investment calculus with the operational cost accounting level. Using the anticipation procedure of hierarchical planning, depreciation rates, as part of the contribution margin of the operational production model, influence the anticipated cash flow of the net present value (NPV) criterion of the investment level. Hence, using a two-stage procedure depreciation rates are determined as NPV-optimal cost parameters. The paper fully accounts for a stochastic environment and compares numerically the two stage cost evaluation with linear depreciations.

JEL-codes: D29 D82 M40 (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.vhb.de/sbr/pdfarchive.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sbr:abstra:v:53:y:2001:i:2:p:66-81

Access Statistics for this article

Schmalenbach Business Review (sbr) is currently edited by Wolfgang Ballwieser

More articles in Schmalenbach Business Review (sbr) from LMU Munich School of Management Contact information at EDIRC.
Bibliographic data for series maintained by sbr ( this e-mail address is bad, please contact ).