Table of Contents:
  • Investment decisions and corporate objectives
  • The time value of money
  • Capital budgeting : the traditional solutions
  • Mutually exclusive investments
  • Annual equivalent costs and replacement decisions
  • Capital budgeting under capital rationing
  • The use of the weighted average cost of capital and other rates of discount
  • The capital asset pricing model
  • The cost of capital and capital structure
  • Distribution policy and capital budgeting
  • A firm investing in a second firm
  • Investing in current assets
  • Foreign investments
  • The buy versus lease decision
  • An introduction to real options
  • Capital budgeting and inflation
  • Reflections on the capital budgeting decision
  • Cases.