Article ID Journal Published Year Pages File Type
1142703 Operations Research Letters 2008 4 Pages PDF
Abstract
In this paper, the expression for the cost of capital is derived when capacity expansion investments and replacement investments exhibit differences in their effective prices. It is shown that the cost of capital derived by perturbing the optimal stock path should be constructed under an opportunity cost criterion.
Keywords
Related Topics
Physical Sciences and Engineering Mathematics Discrete Mathematics and Combinatorics
Preview
Cost of capital for incentives on capacity expansion investments
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