One phase of redemption will be further discussed under "Amortization of Capital" and "Ratio of Output to the Mine.
The purpose of these calculations does not lie in the application of amortization to administrative finance.
Redemption or Amortization of Capital and Interest.
Mine Valuation (Continued) Redemption or amortizationof capital and interest.
It is then possible to determine the present value of this annual income after providing for amortization and interest on the investment at various rates given, by multiplying the annual income by the factor set out.
It is desirable to state in some detail the theory of amortization before consideration of its application in mine valuation.
On a basis of a 7% return on the investment and amortization of capital (Table I), the factor is 6.
In the practical conduct of mines or mining companies, sinking funds for amortization of capital are never established.
It is no case for calculating amortizationand other refinements.
The wealthier householders had threatened to pay at once the whole amortization debt that hung over their plots, so as to compel the community to deed them over to their owners at the time, according to law[150].
It took about 20 years before the rise of rent brought the price of land above the redemption debt, as decreased by the previous amortization payments made by the peasants.
So long as the capitalized amortization tax exceeded the value of the land, the number of peasants who had redeemed their lots in absolute property was limited to a score of the wealthiest householders in a district.
Perchance we might write and ask the mining promoter what, in his belief, is the proper amortization charge in his particular mine.
Let us admit that digging gold can never be put on the sameamortization basis with digging potatoes, for instance, because the soil remains for more potatoes, whereas the ore of a mine is exhausted and does not raise more ore.
Most of the remainder will arise from loss and excess-profits credit carrybacks, recomputed amortization on war plants, and special relief from the excess profits tax.
The practice has grown up in recent years of contracting long term leases under which both rent and amortization principal cost of buildings is included.
This amortization of the Republic's debt for these improvements has been going steadily forward.
No effort is made to levy tolls that will provide for interest charges, or for the amortization of the principal.
One of the most desirable types of financing is through a financially sound building and loan association whereby the interest and the amortization of the mortgage are taken care of through monthly payments.
The establishment of a sinking fund for payment of interest and amortization of these bonds frequently constitutes a very heavy drain upon the residents of the district.
The bank is also called upon to determine appropriate rates of depreciation for fixed assets and to ensure that the required amortization payments to the budget are made on time.
In calculating gross income, amortization of fixed assets is generally not included as an expense, which further raises the base used for the computation of the compulsory investment fund.
The dates for payment of interest, the manner of applying the amortization fund, and all other questions relating to the issue, management, and regulation of the bond issue shall be determined by the commission from time to time.
Payments of principal and interest were to be made semiannually in accord with the amortization table of the Federal Farm Loan Board.
As one great Land Act has followed another, the length of time for the payment of the farm has been increased, until now the amortization period is about sixty-eight years.
I am not sure what plan will be adopted, but I assume it will be amortization and a retirement of the stock of the original company.
Interest and amortization charges on the invested capital are included in the costs of construction.
The amount of the amortization and of the reserve fund, as well as the purpose to which the reserve fund may be applied, shall be regulated by special law.
Purchasers of the stock should accordingly consider amortization and pay only such price as will be covered by the discounted value of the prospective dividends during the life of the mine.
