Borrowing requirements

The conclusion drawn by Foley is that new borrowing is required to meet this shortfall. There is a paradox of borrowing, the borrowing requirement contrasting with the received opinion in Marxist circles that all investment is drawn from an existing pool surplus value.1 With B(t) defined as new capital borrowing (ibid. 89), capital outlays under expanded reproduction are met by setting... 

It can be pointed out that Foley implicitly embraces a single swap approach to the circuit of money. He assumes that capitalists must advance as money capital the total value of output, which once sold earns the precise amount of revenue required to recover the outlay. This is seen most clearly in equation (5.1), where the money capital advance is equal to the total sales of all capital and consumption goods. In Chapter 4 we saw that this approach, associated with Seccareccia (1996), has been heavily criticized by Nell (2004) for overestimating the amount of money required to oil the circuit of money - a serious miscalculation since it is important to know the precise borrowing requirements placed on the financial system. 

The second most important source of short-term financing is notes payable from commercial banks. Banks normally reqmre a Borrower to maintain a compensating balance. For example, if a company requires a loan of 100,000, it must borrow more than this, say, 120,000 (on which it pays interest), in order to maintain a minimum checldng-accouut balance of 20,000. Commercial banks also provide a wide variety of other services that can be of great help to companies in temporary financial difficulties. 

Most feasibility studies involve debt and equity. In the section on Economics it was assumed that there was a debt and interest to be paid. The amount of debt, or debt to equity ratio, varies widely from company to company. Some companies assume 100% equity and require the project to meet their set criteria on the entire investment. In this case all borrowings are considered to be at the corporate level, which then provides 100% of the funds to each project. In other companies, particularly utilities, the debt at the project level can be as high as 75% or more. 

Because borrow soils will be mixed and modified during placement, the cover soil for an ET landfill cover, as constructed, will be unique to the site. However, the soil properties may be easily described. The design process requires an evaluation of whether or not the proposed soil and plant system can achieve the goals for the cover. Numerous factors interact to influence ET cover performance. A mathematical model is needed for design that is capable of (1) evaluating the site water balance that is based on the interaction of soil, plant, and climate factors and (2) estimating the performance of an ET landfill cover during extended future time periods. 

A man wishes to borrow 2,400 so he can buy a new car. He can get a bank loan for which he would be required to pay 7% interest on the initial loan. The payments would be in equal monthly installments over a period of one year. He could also get a loan from the credit union where he works. The terms are that each month he would pay 200 to reduce the capital borrowed and 1% interest on the unpaid balance. What is the total interest paid for each loan ... 

You borrow 35,000 from a bank at 10.5% interest to purchase a multicone cyclone rated at 50,000 ft3/min. If you make monthly payments of 325 (at the end of the month), how many payments will be required to pay off the loan ... 

In (5.5) borrowing is used to finance all money capital outlays on capitalist consumption (u) and new constant and variable capital (dC + dV) in (5.6) this outlay has a multiplier effect (in proportion m) on total sales. As a consequence, the money circuit is viable without the requirement of a money hoard, accumulated from the previous period s sales. 

An emphasis on borrowing, with the multiplier firmly located in Marx s reproduction schema, is provided by the Domar model of economic growth. Instead of providing a snapshot of each period of production, the schema can be developed over an extended number of periods thereby providing a more complete picture of economic growth over time. The contribution of the following analysis will be to derive the model developed by Domar (1947) from foundations that are consistent with Marx s multisectoral schema. Domar s model is particularly suitable for this purpose because it specifies the conditions required for balanced growth. In contrast to Harrod s variant of the model, in which actual investment is determined by an accelerator mechanism, in Domar s model the actual level of investment... 

This insight into how financial crises develop can be examined in the light of the Foley/Domar borrowing paradox. To recap, we have established that expanded reproduction requires borrowing on the part of the capitalist class. How then does Marx s insight, that borrowing can outstrip realization, relate to the expanded reproduction schema To answer this question... 

As we have seen, however, the circulation of money also plays a pivotal role in the reproduction schema. Without borrowing from the financial system expanded reproduction is not possible. Investment is exogenous, financed not out of the pockets of capitalists, but by the financial system. Embedded in the tension, established by Domar, between investment as a dual source of capacity and demand, is a fragile network of credit relationships between capitalists and banks. Marx s reproduction schemes expose the stringent conditions on the finance and realization of investment that are required for balanced growth. Since these conditions are unlikely to be met - supply is unlikely to create its own demand - a refutation of Say s Law is offered by the reproduction schema. 

Installation of b will require 200,000 more than installation of a, which is an amount that must be borrowed at an interest rate of 6% per year. The principal must be repaid from the operational savings of the heat pump. Assume that the heat pump releases heat into the building at a temperature of 40°C and that the heat pump operates at 40% of the ideal Carnot efficiency. How many years will be required to repay the borrowed money ... 

The disciplines of engineering and quality control have long recognized the principles of root cause analysis. Some process safety tools for root cause analysis have been borrowed from these disciplines. For example, fault tree analysis was developed as an engineering tool, but its logic tree structure has been adapted to meet process safety requirements. 

Laboratories, like any other investment, require a certain amount of capital to start and operate. Spend the necessary cash to buy the proper equipment to do the procedures required. Faulty equipment (not to mention insufficient knowledge) can cause fires, explosions, asphyxiation, and many other hazards. You can have one hell of a nice laboratory for the price of a funeral these days. Also hospitals are in excess of 150 a day if you are not in intensive care or requiring special services. 150 a day can operate even the most elaborate of laboratories. Therefore, if you have to beg, borrow, or steal to obtain a functional laboratory, then do so. Is three to five thousand dollars too much to spend on a lab that can easily produce a quarter of a million dollars worth of THC every week It takes money to make money, but very few, if any, investments can pay off as well as an underground laboratory run by competent chemists. 

Because the Basilica is the doge s private chapel and the Christmas service would be by invitation only. A nobleman in borrowed black robes might have bluffed his way in, but nobles are required to wear beards. ... 

Capital is required to meet both miming expenses and particnlarly new capital items. Sources are usually retained profits, equity (share capital) and borrowings. 

Solute equilibrium between the mobile and stationary phases is never achieved in the chromatographic column except possibly (as Giddings points out) at the maximum of a peak (1). As stated before, to circumvent this non equilibrium condition and allow a simple mathematical treatment of the chromatographic process, Martin and Synge (2) borrowed the plate concept from distillation theory and considered the column consisted of a series of theoretical plates in which equilibrium could be assumed to occur. In fact each plate represented a dwell time for the solute to achieve equilibrium at that point in the column and the process of distribution could be considered as incremental. It has been shown that employing this concept an equation for the elution curve can be easily obtained and, from that basic equation, others can be developed that describe the various properties of a chromatogram. Such equations will permit the calculation of efficiency, the calculation of the number of theoretical plates required to achieve a specific separation and among many applications, elucidate the function of the heat of absorption detector. 

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