Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/217863 
Year of Publication: 
1984
Citation: 
[Journal:] South African Journal of Business Management [ISSN:] 2078-5976 [Volume:] 15 [Issue:] 3 [Publisher:] African Online Scientific Information Systems (AOSIS) [Place:] Cape Town [Year:] 1984 [Pages:] 140-143
Publisher: 
African Online Scientific Information Systems (AOSIS), Cape Town
Abstract (Translated): 
The application of increasing price-level changes to capital investment decisions Inflation (the decreasing purchasing power of money) has become a reality with which one has to live, and for which one has to plan. As a result of the decrease in the purchasing power of money, the prices of production means are going up considerably, and more so where long-term capital projects are involved. The initial investment in respect of a capital project involves the least risk in accuracy, as it has to be known at the moment of decision-making and cannot be changed significantly until the decision has been realized. The other factors essential for decision-making and which will be realized in the future throughout the lifespan of the asset are subject to change in the value of money and it is important that the influence of this change be taken into account. The impact of price-level changes can be taken into account through the use of general or specific price-level changes. The application of this has led to the fact that only general price-level changes, or only specific price-level changes, or general and specific price-level changes can be used for the adjustment of items. The last includes the advantages of using both price-level changes. In each of these applications different methods have been developed which agree in principle, while there may be differences with regard to details of the applications.
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Creative Commons License: 
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Document Type: 
Article

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