The Capital Budgeting Decision: Economic Analysis and Financing of Investment ProjectsThe problem of capital budgeting; Illustrating the measures of investment worth; Present value versus rate of return; The meaning of present value; Classifying investments; The use of cash flows in evaluating investments; Corporate income taxes and investment decisions; Capital budgeting under capital rationing; An introduction to uncertainty; Introduction to portfolio analysis; The capital asset pricing model; Application of the capital asset pricing model to multiperiod investments; Uncertainty and undiversified investors; Buy or lease; Accounting concepts consistent with present-value calculations; Capital budgeting and inflation; Investment timing; Evaluation private investment proposals: a national economic point of view; Fluctuating rates of output; using investment portfolios to change risk; Models for portfolio analysis; Capital rationing: a programming approach. |
Contents
part | 1 |
illustrating the measures of investment worth 22 | 22 |
present value versus rate of return | 41 |
Copyright | |
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$1 million ABC Company accept alternatives amount analysis annual asset Assume benefits borrowing calculations capital budgeting capital rationing cash outlays cash proceeds cent chapter considered corporation cost of money debarker debt default-free depreciation desirable discount rate discounted cash flow dividends dollar earn equal equipment estimate evaluating example expected monetary value expected return expected value factor financing firm funds income tax independent investments interest rate investment decisions investment proposals investor large number lease loan machine market portfolio measures of investment ment mutually exclusive investments net present value operating opportunity cost outcomes payback period payments plant possible present value present-value method problem profitable purchase rate of discount rate of interest rate of return real cash result return on investment revenues risk salvage value situation standard deviation statistically independent stockholders Table tax purposes tax rate uncertainty utility function value of money variance zero