eBook - PDF
Capital Budgeting
Financial Appraisal of Investment Projects
- 343 pages
- English
- PDF
- Available on iOS & Android
eBook - PDF
Capital Budgeting
Financial Appraisal of Investment Projects
About this book
This book explains the financial appraisal of capital budgeting projects. The coverage extends from the development of basic concepts, principles and techniques to the application of them in increasingly complex and real-world situations. Identification and estimation (including forecasting) of cash flows, project appraisal formulae, and the application of net present value (NPV), internal rate of return (IRR) and other project evaluation criteria are illustrated with a variety of calculation examples. Risk analysis is extensively covered by the use of risk adjusted discount rate, certainty equivalent, sensitivity, simulation and Monte Carlo analysis. The NPV and IRR models are further applied to forestry, property and international investments. Resource constraints are introduced to the capital budgeting decisions with a variety of worked examples using linear programming technique. All calculations are extensively supported by Excel workbooks on the Web, and each chapter is well reviewed by end of chapter questions.
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Information
An
overview
5
CorporateĀ
goal
StrategicĀ
planning
InvestmentĀ
opportunities
PreliminaryĀ
screening
FinancialĀ
appraisal,
quantitativeĀ
analysis,
projectĀ
evaluationĀ
or
projectĀ
analysis
QualitativeĀ
factors,Ā
judgementsĀ
andĀ
gutĀ
feelings
AcceptĀ /rejectĀ
decisionsĀ
onĀ
theĀ
projects
Accept
Reject
Implementation
Facilitation,Ā
monitoring,
controlĀ
andĀ
review
Continue,
expandĀ
or
abandonĀ
project
Post-implementationĀ
audit
Figure
1.2.
The
capital
budgeting
process.
projects
should
be
analysed
by
taking
into
account
the
cash
ļ¬ow
interactions
of
all
the
projects.
The
capital
budgeting
process
Capital
budgeting
is
a
multi-faceted
activity.
There
are
several
sequential
stages
in
the
process.
For
typical
investment
proposals
of
a
large
corporation,
the
distinctive
stages
in
the
capital
budgeting
process
are
depicted,
in
the
form
of
a
highly
simpliļ¬ed
ļ¬ow
chart,
in
Figure
1.2.
Strategic
planning
A
strategic
plan
is
the
grand
design
of
the
ļ¬rm
and
clearly
identiļ¬es
the
business
the
ļ¬rm
is
in
and
where
it
intends
to
position
itself
in
the
future.
Strategic
planning
translates
the
ļ¬rmās
corporate
goal
into
speciļ¬c
policies
and
directions,
sets
priorities,
speciļ¬es
the
structural,
Table of contents
- Cover
- Half-title
- Title
- Copyright
- Contents
- Figures
- Tables
- Preface
- 1 Capital budgeting: an overview
- 2 Project cash flows
- 3 Forecasting cash flows: quantitative techniques and routes
- 4 Forecasting cash flows: qualitative or judgemental techniques
- 5 Essential formulae in project appraisal
- 6 Project analysis under certainty
- 7 Project analysis under risk
- 8 Sensitivity and break-even analysis
- 9 Simulation concepts and methods
- 10 Case study in financial modelling and simulation of a forestry investment
- 11 Resource constraints and linear programming
- 12 More advanced linear programming concepts and methods
- 13 Financial modelling case study in forestry project evaluation
- 14 Property investment analysis
- 15 Forecasting and analysing risks in property investments
- 16 Multinational corporations and international project appraisal
- References
- Index
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Yes, you can access Capital Budgeting by Don Dayananda,Richard Irons,Steve Harrison,John Herbohn,Patrick Rowland in PDF and/or ePUB format, as well as other popular books in Business & Finance. We have over 1.5 million books available in our catalogue for you to explore.