Business Investment and Economic Depreciation
作者： George W. Blazenko , Andrey D. Pavlov
DOI: 10.2139/SSRN.1012981
关键词: Market economy 、 Monetary economics 、 Profitability index 、 Consumption of fixed capital 、 Upside potential ratio 、 Value (economics) 、 Depreciation 、 Business 、 Investment (macroeconomics)
摘要: We show economic depreciation decreases value maximizing investment hurdle rates and encourages both maintenance growth. Economic without the upside potential of future growth opportunities upon stochastically improved profitability. Managers forestall this decrease with expansion investments even modest current returns. While for existing businesses, it impedes new venture start in first instance.
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