Capital asset

This is the simplest of the methods. In which an allowance for the capital asset is claimed over a number of years in equal amounts per year, e.g. 20% of the initial capex per year for 5 years. 

Commercial plastics polymerisation is akin to making pig s ears out of silk purses, albeit usually useful porcine ears from very worn out handbags. What were once valuable polymers are turned into generally less valuable monomers. The regenerated monomers and small chemicals from polymerisation of post-consumer plastics have no particular moral authority or intrinsic grace compared to chemicals derived from non-recycling sources. To be successful, commercial polymerisation must make economic sense in ways that are understood by those who invest dear money into capital assets. 

Bring forward any planned sales of capital assets. 

The aim must be to invest in the development of a component library as a capital asset (see Figure 10.1). Like any investment, this one requires money to be spent for a while before any payback is seen. A conventional software development organization requires a considerable shift of attitudes and strategy to adopt a component-based approach. Like all... 

Product development The design and creation of applications to solve a problem. This phase is centered on understanding the problem and rapidly locating and assembling reuse capital assets to provide an implementation. 

Asset development The design and creation of the reusable components that will be used in different contexts. This is carried out with more rigorous documentation and thought. Because software capital assets will be used in many designs, the impact of a change can be, for better or worse, quite large. 

The treatment of nonpatentable secret processes is not covered by any one specific statutory code section as in the case of patents, but it is governed by all the rules generally applicable to capital transactions. While you can t confidently predict results in this area, it is possible to get capital gain treatment from the sale of a nonpatentable secret process. Such a result could very possibly be challenged by the IRS on the grounds that the transaction is a license or that the secret process is not a capital asset. 

On the basis that water treatment programs can be likened to insurance, underinsured buyers, in the event of a problem, never receive a 100% payout. It is therefore far more important for buyers to ensure the proper protection of a costly production plant, capital assets, and maintaining their life span than saving a dollar on the water treatment contract. 

Finally, in 1998, the OMB established the requirements for capital asset planning and budgeting to implement the Government Performance and Results Act of 1993 (GPRA)... 

Risk management should be central to the planning, budgeting, and acquisition process. Failure to analyze and manage the inherent risk in all capital asset acquisitions may contribute to cost overruns, schedule shortfalls, and acquisitions that fail to perform as expected. For each major capital project, a risk analysis that includes how risks will be isolated, minimized, monitored, and controlled may help prevent these problems. 

The Capital Asset Pricing Model and other financial theories around diversification offer useful insights. If I give you a million dollars, you are a fool to invest in venture capital. But if you have a billion dollars, you are a fool if you don t invest in venture capital. 

A capital budgetis a plan for the acquisition of capital assets, such as buildings and equipment. A financial budget is a plan that shows how the pharmacy business... 

The normal method of calculation for company funds is to use the capital asset pricing model (CAPM). This was developed by share analysts keen to have a defence against accusations of negligence in selecting shares for clients as a means of assessing the real value of any share, in the form of risk and desirability. It essentially demonstrates one version of the direct proportionality between risk and return. 

A capital-gains tax is levied on profits made from the sale of capital assets, such as land, buildings, or equipment. The profit is known as long-term capital gain if the asset was held for more than one year if it was acquired after December 31, 1987 or between December 31, 1977 and June 23, 1984 (six months for property acquired between June 23, 1984 and December 31, 1987, nine months in 1977, and six months before 1977). The profit is known as short-term capital gain if the time held is less than those indicated for long-term capital gain. 

Many of the PV electrolytic H2 production and distribution system components have an operating life that will exceed the assigned thirty-year capital recovery period. With the amortization of debt capital and the depreciation of equity capital assets, post-year-thirty H2 production and distribution costs will decline. With the capital amortization of system components, H2 production cost is reduced to O M expenses for those system components. Therefore, it makes sense to evaluate both first and second generation H2 production costs. First generation H2 production is defined as the initial thirty-year capital recovery period, and second generation H2 production is defined as the post-amortization, Year 31-Year 60 H2 production period. 

The first is the Cost of Equity. It is defined here as the return that a shareholder expects from the company over a certain period, in terms of dividend and the capital gain from a rise in the stock price. These are the actual expectations of income on which an investor bases his original purchase or reviews his portfolio. The Cost of Equity can be estimated using the Capital Asset Pricing Model (CAPM). 

Company Sales (MMS) Net Profit (MMS) Total Assets (MMS) Capital Spending (MMS) Capital/ Sales Capital/ Net Profit Capital/ Assets... 

The dust of the recent economic implosion has yet to settle. Capital assets and fortunes have been dreamed up, liquidated, and lost more times than any industrial-size paper shredder can handle in a lifetime. Analysts and investors will bear for years the burden of ignoring the high debt loads of many of the now-fallen giants of technology. Former executives and employees of now defunct companies will continue to battle in the courts for years. Fewer CEOs stay with their company for the long term,10 while the media and the public have hotly debated whether corporate returns have kept up with hyperbolic CEO pay.11 The number of business failures has been... 

Another economic indicator, the debt-to-capital ratio, is defined as the long-term debt divided by the total capital. This ratio is an indication of how highly leveraged a company might be. The ratios for a selected industries are found in Table 8.33. The ratios for these companies have been relatively constant in the range of 0.27 to 0.42 over a 10 year period (1984-1994). As an example of how the debt-to-equity ratio affects the return on equity, let us consider two companies.. Company A has a debt-to-equity ratio of 0.35, and company B s ratio is 0.80 (see Table 8.34). Assume that the interest rate on debts is 10% and that each company earns 30 cents per dollar of capital before income tax and interest. The problem is solved by assuming that debt plus equity equals capital assets, which... 

Book value refers to the end-of-the-year value of capital assets after depreciation expenses. Strict accounting convention determine what kinds of investments create a capital asset. R D, for example, is not recorded as an investment but is fully expensed in the year in which expenditures are made. This accounting convention required since 1975 by the Federal Accounting Standards Board, is equivalent to depreciating die investment 100 percent in die year it is made. 

In addition to resources that qualify for the section 174 deduction discussed earlier (such as salaries and depletable supplies), pharmaceutical R D also requires the use of capital assets such as machinery, equipment, and facilities. The tax... 

CAPM —capital asset pricing model EDCs —European Discovery Capability Units... 

Book value The current values of capital assets claimed by a company in its financial statements after depreciation expenses. Strict accounting conventions determine what kinds of investments create a capital asset. 

Capital asset A tangible or intangible asset intended for long-term use. 

Capital asset pricing model An economic model of equilibrium in capital markets which predicts rates of return on all risky assets as a function of their correlation (or covariance) with the overall market portfolio. 

Producing the hydrogen onboard as needed solves the infrastructure problem, but there are some dear drawbacks to the approach. The reformer would add to the cost of the vehide and take up additional room. The added weight would hurt fuel economy. A reformer placed at a centralized location might operate 80-95% of the time, but an onboard version would operate a fraction of that time and be an underutilized capital asset. Most importantly, if the original fuel is gasoline, then... 

Note Average of VEBA s and VIAG s WACC and in 2000 before merger. Capital asset pricing model. 

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