Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support

Asset Replacement Principles

R. K. Perrin
American Journal of Agricultural Economics
Vol. 54, No. 1 (Feb., 1972), pp. 60-67
Stable URL: http://www.jstor.org/stable/1237734
Page Count: 8
  • Download ($36.00)
  • Cite this Item
If you need an accessible version of this item please contact JSTOR User Support
Asset Replacement Principles
Preview not available

Abstract

Using a general model of asset replacement, a replacement principle is derived which applies to both appreciating assets such as forests and depreciating assets such as equipment. The resulting replacement criterion provides a definition of opportunity costs appropriate for the replacement decision. The theory is presented graphically for the continuous time case, and two discrete-time examples are considered. Theoretical implications of changing discount rates and market forces are considered as they affect replacement policies.

Page Thumbnails

  • Thumbnail: Page 
60
    60
  • Thumbnail: Page 
61
    61
  • Thumbnail: Page 
62
    62
  • Thumbnail: Page 
63
    63
  • Thumbnail: Page 
64
    64
  • Thumbnail: Page 
65
    65
  • Thumbnail: Page 
66
    66
  • Thumbnail: Page 
67
    67