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Reinvestment decisions are based on basic the economic literacy of entrepreneurs because they do not want to affect … describe profit reinvestments in a general way based on results of a primary pilot study (128 interviews), where reinvestment … decisionmaking tree is suggested to explain the process of reinvestment as determined by the manager. …
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According to housing investment models, house prices and replacement cost should have an equilibrating relationship. Previous empirical work - mainly based on aggregate-level data - has found only little evidence of such a relationship. By using a unique data set, covering transactions of...
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This paper considers the profit maximization problem of a firm that must make sunk investments in long-lived assets to produce output. It is shown that if per period accounting income is calculated using a simple and natural allocation rule for investment called the relative replacement cost...
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We develop a theory of managerial replacement in which a venture capitalist monitors an investee firm run by a manager …
Persistent link: https://www.econbiz.de/10011317360
This paper discusses several strategies for the maintenance of light standards, where each light standard consists of n independent and identical lamps screwed on a chandelier. The lamps are subject to stochastic failures, and must be correctively replaced if the number of failed lamps reaches a...
Persistent link: https://www.econbiz.de/10010232147
Optimal age replacement policies for network components such as cables, overhead lines or transformers are usually identified based on gathered knowledge about the state of a component and its stochastic deterioration process. In this context, uncertainty is an important challenge because...
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