Distortions Imposed By Inflation on Historical-Cost Depreciation

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Bravo-Ureta, Boris E.;
(1983)
  • Subject: Agricultural Finance,

The use of historical-cost depreciation in periods of persistent inflation decreases the present value of depreciation deductions, thus understating the true economic cost of capital and increasing the real after-tax rate of return required by potential investors. Effor... View more
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