Capital Asset Investment - Strategy, Tactics and Tools

Ties together the theory, quantitative methods, and applications of capital budgeting. This work provides a balanced treatment of the different approaches to capital project evaluation. It explores both the strengths and weaknesses of various project selection methods. It also includes topics such as abandonment analysis.

List of contents

Preface.
 
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.
 
Leasing.
 
Leveraged leases.
 
Alternative investment measures.
 
Project abandonment analysis.
 
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.

Product details

• Authors: Herbst, Af Herbst, Anthony F Herbst, Anthony F. Herbst, HERBST ANTHONY F, Herbst Anthony F.
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 01.10.2002
• EAN: 9780470845110
• ISBN: 978-0-470-84511-0
• No. of pages: 336
• Series: Wiley Finance; Wiley Finance; The Wiley Finance Series
• Subjects: Social sciences, law, business > Business > Management; Finanzwirtschaft, BUSINESS & ECONOMICS / Budgeting, Budgeting and financial management, Allg. Finanz- u. Anlagewesen, Finance & Investments, Finanz- u. Anlagewesen, Finance and accounting