1st Edition

The Capital Budgeting Decision
Economic Analysis of Investment Projects

ISBN 9780415400046
Published December 14, 2006 by Routledge
404 Pages - 44 B/W Illustrations

USD $76.95

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Book Description

Fully updated and revised by international authorities on the topic, this new version of a classic and established text returns to its roots as a clear and concise introduction to this complex but essential topic in corporate finance.

Retaining the authority and reputation of previous editions, it now covers several topics in-depth which are frequently under explored, including distribution policy and capital budgeting.

Features new to this edition include:

  • a new chapter on real options
  • new material on uncertainty in decision-making.

Easily understandable, and covering the essentials of capital budgeting, this book helps readers to make intelligent capital budgeting decisions for corporations of every type.

Table of Contents

1. Investment Decisions and Corporate Objectives  2. The Time Value of Money  3. Capital Budgeting: The Traditional Solutions  4. Mutually Exclusive Investments  5. Annual Equivalent Costs and Replacement Decisions  6. Capital Budgeting Under Capital Rationing  7. The Use of the Weighted Average Cost of Capital and Other Rates of Discount  8. The Capital Assett Pricing Model  9. The Cost of Capital and Capital Structure  10. Distribution Policy and Capital Budgeting  11. A Firm Investing in a Second Firm  12. Investing in Current Assets  13. Foreign Investments  14. The Buy versus Lease Decision  15. An Introduction to Real Options  16. Capital Budgeting and Inflation  17. Reflections on the Capital Budgeting Decision  18. Cases

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Harold Bierman, Jr. is the Nicholas H. Noyes Professor of Business Administration at the Johnson Graduate School of Management, Cornell University.

Seymour Smidt is Professor Emeritus at the Johnson Graduate School of Management, Cornell University.