A Decision Procedure for Capital Rationing Investment and Borrowing Decisions

This paper presents a decision procedure to aid in making capital rationing investment and borrowing decisions. Weingartner's Basic Horizon Model and Oakford and huesen's Maximum Prospective Value criterion are both extended to explicitly include long-term borrowing decisions. Information...

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Published inThe Engineering economist Vol. 26; no. 4; pp. 275 - 292
Main Authors Lohmann, Jack R., Oakford, R. V.
Format Journal Article
LanguageEnglish
Published Taylor & Francis Group 01.01.1980
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ISSN0013-791X
1547-2701
DOI10.1080/00137918008902888

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Abstract This paper presents a decision procedure to aid in making capital rationing investment and borrowing decisions. Weingartner's Basic Horizon Model and Oakford and huesen's Maximum Prospective Value criterion are both extended to explicitly include long-term borrowing decisions. Information derived from interviews with financial executives on the subject of business attitudes toward borrowing is used to develop the conceptual logic of the decision procedure, which is presented in terms of a mathematical programming formulation.
AbstractList This paper presents a decision procedure to aid in making capital rationing investment and borrowing decisions. Weingartner's Basic Horizon Model and Oakford and huesen's Maximum Prospective Value criterion are both extended to explicitly include long-term borrowing decisions. Information derived from interviews with financial executives on the subject of business attitudes toward borrowing is used to develop the conceptual logic of the decision procedure, which is presented in terms of a mathematical programming formulation.
Author Lohmann, Jack R.
Oakford, R. V.
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Cites_doi 10.1111/j.1540-6261.1972.tb00622.x
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