Original Research
Capital investment incentives in an inflationary environment
South African Journal of Business Management | Vol 14, No 3 | a1150 |
DOI: https://doi.org/10.4102/sajbm.v14i3.1150
| © 2018 R. C. Doenges, W. D. Hamman
| This work is licensed under CC Attribution 4.0
Submitted: 24 October 2018 | Published: 30 September 1983
Submitted: 24 October 2018 | Published: 30 September 1983
About the author(s)
R. C. Doenges, Graduate School of Business, University of Stellenbosch, South AfricaW. D. Hamman, Graduate School of Business, University of Stellenbosch, South Africa
Full Text:
PDF (413KB)Abstract
The attention in this paper has been directed at the problem whether the 30% machinery investment allowance was sufficiently high enough seen against the background of the present double digit inflation. The authors arrived at the interesting conclusion that the shortfall at replacement is caused by the fact that depreciation for fiscal purposes is based upon historical cost and not on replacement cost. The investment allowance filled this gap and it was concluded that this allowance was high enough in the majority of cases.
Keywords
No related keywords in the metadata.
Metrics
Total abstract views: 1377Total article views: 514