Reconsiders the double sinking fund problem by looking at each ofthe common methods used. Investigates the underlying assumptions and theresidual errors or inconsistencies. Notes that the use of traditionaldual rate valuations results in a mathematical error within thevaluation and an undervaluation of the interest. Concludes that theDouble Sinking Fund Method must be recommended in preference toPannells Method.
Journal of Property Valuation and Investment – Emerald Publishing
Published: Jan 1, 1991