This book addresses an ongoing challenge for business professionals and economists: how to allocate available financial resources among many possible investment projects.
I. CAPITAL BUDGETING WITH CERTAINTY. 1.Capital Budgeting. 2. The Time Value of Money. 3. Capital Budgeting: The Meaning of Net Present Value. 4. Measuring Investment Value: Decisions with Certainty. 5. Mutually Exclusive Investments. 6. The Determination and Use of Cash Flows.
II. CAPITAL BUDGETING APPLICATIONS AND SOME OPERATIONAL PROBLEMS. 7. Annual Equivalent Costs and Replacement Decisions. 8. Capital Budgeting Under Capital Rationing. 9. Capital Budgeting and Inflation. 10. Accounting Concepts Consistent with Present Value Calculations. 11. Buy or Lease. 12. Investment Timing. 13. Fluctuating Rates of Output. 14. Investment Decisions with Additional Information. 15. Foreign Investments. 16. Economic Evaluation of Investment Proposals: The Government's Point of View.
III. CAPITAL BUDGETING WITH UNCERTAINTY. 17. Capital Budgeting with Uncertainty. 18. The Rate of Discount and Uncertainty. 19. The State Preference Approach. 20. The Capital Asset Pricing Model. 21. Valuing Flexibility: An Application of Option-Valuation Techniques. 22. A New Approach To Uncertainty. 23. A Manual.
IV. CASES. Case 1: The Oneida Tomato Company. Case 2: Wellesley Woolen Company. Case 3: Norwalk Screw Company. Case 4: The Calculating Energy Saver. Case 5: The A Company's Manual. Case 6: Fall River Lumber Company. Case 7: Jacobs Division. Case 8: The Modem Corporation. Case 9: Community Edison Company. Case 10: The Algone Case. Case 11: Bokaro Steel Plant. Case 12: The Eatwell Company. Case 13: Rokal Company. Case 14: The A Chemical Company. Case 15: The Detroit Tool Company. Case 16: The Lansing Lift Company. Case 17: The Toledo Glass Company. Case 18: The Continental Company. Case 19: The Midwest Company.
APPENDIX TABLES. A. Present Value of -1.00. B. Present Value of -1.00 Received Per Period. C. Present Value of Declining Balance Depreciation Amounts. D. Depreciation Expense per Year Taking Into Account Half-Year Convention and Optimal Switch to Straight Line. E. e-X. Index.