The Panacea of Annuity Depreciation

• Autores: Luis A. Berríos Burgos
• Localización: Fórum Empresarial, ISSN-e 2475-8752, ISSN 1541-8561, Vol. 1, Nº. 1, 1996, págs. 66-78
• Idioma: inglés
• Títulos paralelos:
  • La panacea de la depreciación de anualidad
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  • español

    La panacea de la depreciación de anualidad

  • English

    This paper examines the validity of the argument that symmetry between capital budgeting-decision making and post-performance evaluation can be achieved by the use of annuity depreciation. The examination was made by comparing the results for a given investment project under varying sets of rename or cash flows using the annuity and straight-line depreciation methods. The findings suggest that the attributes claimed by the proponents of the annuity scheme of depreciation do not stand the tests made.