An Extension of Jordan's Analysis of Section 179 Property.
本文扩展了乔丹对1981年经济复苏税法中第179条财产选项的分析，引入季度现金流折现以提高精度，并讨论了折现率求解的假设条件。
Abstract This article presents information on the analysis of several options available in the economic recovery tax act of 1981 by W.F. Jordan. Jordan provided quantitative criteria for selection of those options. Jordan's analysis is modified in this article to accommodate the occurrence of cash flows on a quarterly basis in accordance with the estimated tax payment procedure. The study conducted by Jordan indicates that tax planners interested in more precision should resort to quarterly discounting of cash flows and a more careful recognition of the importance of the timing of asset purchase. Finally, it is stated that even quarterly discounting is an estimate since it involves projections of cash flows three or five years into the future. Jordan illustrated that it is possible to solve for the discount rate which equates the present value of the Section 179 immediate expensing and investment tax credit/accelerated cost recovery system deduction alternatives. However, certain assumptions are to be made before that solution is possible. Some of those assumptions are: first, the tax rate should remain constant throughout the life of the asset; Second, both the capital recovery deduction and the investment tax credit must result in cash flow functions in the years in which they are taken.