Improved Accounting of Interest Charges in Equipment Costing

Authors

  • Andrew F. Howard University of British Columbia, Vancouver, BC, Canada

Abstract

Interest charges are an important component of owning and operating costs for logging equipment. Methods commonly employed by researchers and practitioners ignore the difference between interest on borrowed money and proprietary capital invested. Correct formulas for computing interest charges are given and a comparative study between historic methods and the appropriate computations is presented.

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Published

1991-01-01

Issue

Section

Technical Notes