Inflation reshapes how you choose between short- and long-lived assets and when you replace them.
This book presents a practical framework for seeing how inflation, nominal rates, taxes, and uncertainty affect capital budgeting decisions.
Written for students and professionals alike, it analyzes how firms decide between technologies of different durability and how replacement policies respond to changing prices. Clear explanations anchor theory in the real choices managers face when planning investments under inflation.
- How nominal interest rates and inflation influence asset prices and replacement timing
- The role of depreciation tax shields and tax rules in investment choices
- How uncertainty about future inflation adds value to short-lived technologies
- Strategies to reduce distortions, such as aligning tax service lives across asset types
Ideal for readers of economics, finance, and business courses who want a grounded look at inflation’s impact on asset lifetimes and investment decisions.