This study is anchored on the neoclassical theory of capital which states that the demand for capital stock is determined to
maximize net worth of firms. Net worth is defined as the integral of discounted net revenues; all prices including the
interest rate are taken as fixed (Porter, 1980). Net revenue is defined as current revenues less expenditure on both current
and capital account including taxes. According to the theory, production plan for the firm is chosen so as to maximize utility
over time. Under certain well known conditions, this leads to maximization of the net worth of the enterprise as the criterion
for optimal capital accumulation. Capital accumulated to provide capital services, which are inputs to the productive
process