The Capital Budgeting Decision Economic Analysis of Investment Projects

Fully updated and revised by international authorities on the topic, this new version of a classic and established text returns to its roots as a clear and concise introduction to this complex but essential topic in corporate finance. Retaining the authority and reputation of previous editions, it now covers several topics in-depth which are frequentlyunder explored, including distribution policy and capital budgeting. Features new to this edition include: a new chapter on real options new material on uncertainty in decision-making. Easily understandable, and covering the essentials of capital budgeting, this book helps readers to make intelligent capital budgeting decisions for corporations of every type.

1. Investment Decisionsand Corporate Objectives 2. The Time Valueof Money 3. Capital Budgeting:The Traditional Solutions 4. Mutually Exclusive Investments 5. Annual Equivalent Costs and Replacement Decisions 6. Capital Budgeting Under Capital Rationing 7. The Useof the Weighted Average Costof Capitaland Other Ratesof Discount 8. The Capital Assett Pricing Model 9. The Costof Capitaland Capital Structure 10. Distribution Policyand Capital Budgeting 11. A Firm Investing inaSecond Firm 12. Investingin Current Assets 13. Foreign Investments 14. The Buy versus Lease Decision 15. An Introductionto Real Options 16. Capital Budgetingand Inflation 17. Reflectionsonthe Capital Budgeting Decision 18. Cases

Harold Bierman, Jr.is the Nicholas H. Noyes Professor of Business Administration at the Johnson Graduate School of Management, Cornell University. Seymour Smidt is Professor Emeritus at the Johnson Graduate School of Management, Cornell University.