Capital asset investment : strategy, tactics & tools

Bibliographic Information

Capital asset investment : strategy, tactics & tools

Anthony F. Herbst

(Wiley finance series)

J. Wiley, c2002

Available at  / 12 libraries

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Note

Includes bibliographical references (p. [307]-313) and index

Description and Table of Contents

Description

Providing a balanced and practical approach to capital management and budgeting, this book covers the full spectrum of capital investments, from the basics through the latest innovations. It is aimed at managers who are involved in capital investment decisions: setting company capital investment policy; performing project analyses; and drafting recommendations. Those in top management will benefit from discussions of strong and weak points of various methods and concepts. Included in the arsenal of capital investment tools in this book are concepts of proven usefulness, such as the MAPI method, no longer available in other works on the topic of capital budgeting, and other topics not covered elsewhere, such as abandonment analysis.

Table of Contents

Preface. Acknowledgments. Introduction: The big picture, environment, terminology, and preview. The objective of capital budgeting. Estimating basic project characteristics. Cost of capital. Traditional methods that ignore time-value of money. Traditional methods that recognize time-value of money: the net present value. Traditional methods that recognize time-value of money: the internal rate of return. Reinvestment rate assumptions for NPV and IRR and conflicting rankings. The MAPI method. The problem of mixed cash flows: I. The problem of mixed cash flows: II. Appendix: The problem of mixed cash flows III-a two-stage method of analysis. Leasing. Appendix. Leveraged leases. Alternative investment measures. Project abandonment analysis. Multiple project capital budgeting. Appendix to multiple project capital budgeting. Utility and risk aversion. Single project analysis under risk. Multiple project selection under risk: computer simulation and other approaches. Multiple project selection under risk: portfolio approaches. The capital asset pricing model. Multiple project selection under risk. Real options. Appendix: Financial mathematics tables and formulas. Bibliography. Index.

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