The discount rate for capital expenditure analysis in health care
- 1 January 1988
- journal article
- research article
- Published by Wolters Kluwer Health in Health Care Management Review
- Vol. 13 (2) , 43-51
- https://doi.org/10.1097/00004010-198801320-00006
Abstract
The appropriate discount rate for evaluation of capital expenditures depends on leverage, taxation, costbased reimbursement, and risk. A method is presented to account for these effects that is both practical and consistent with theory.Keywords
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