| Abstract: | A programmed equity-redemption approach to finance and analysis is discussed in the context of the financial feasibility of a capital-intensive project. The approach was developed in relation In a large hydroelectric power-development decision; il is illustrated here using domestic wail-insulation as an example. It separates the roles of conventional debt-providers, programmed redemption equity-providers, conventional equity-providers and consumers. Equity with a programmed redemption pattern provides a bridge between conventional debt and equity. Even if il is not used as a means of finance, it provides a new perspective on investment analysis, by separating safe normal profits and uncertain supra-normal profits in a conceptually convenient framework. In the latter context it complements a parametric discounting treatment of economic desirability analysis discussed in an earlier paper. |
