Investment Appraisal: Holmes, Philip: 9781861522122: Book: : eCampus.com

Looks at the fundamentals of investment appraisal and financial decision-making within firms, through a wide variety of examples and illustra- tions, case studies, chapter summaries and questions. Paper.

1 An introduction to the investment decision

(13)

Introduction

(1)

The goals of the organization

(1)

What is investment?

(2)

The nature of the investment decision making process

(1)

The role of investment appraisal and investment appraisal techniques

(1)

The identification of a project's cash flows

(3)

The efficiency of financial markets

(2)

Summary and key points

(1)

Questions

(1)

2 The time value of money, discounting and present values

(13)

Introduction

(1)

The time value of money

(1)

Present values and discounting

(3)

Short cuts in discounting: annuities and perpetuities

(2)

Short cuts in discounting: using present-value tables

(1)

Summary and key points

(1)

Appendix: The derivation of formulae used in Chapter 2

(1)

Worked examples

(2)

Questions

(1)

Note

(1)

3 Non-discounting techniques of investment appraisal

(11)

Introduction

(1)

The payback method of investment appraisal

(3)

The accounting rate of return method of investment appraisal

(3)

Summary and key points

(2)

Worked examples

(1)

Questions

(1)

4 Discounting techniques of investment appraisal

(20)

Introduction

(1)

The net present value (NPV) method of investment appraisal

(1)

The internal rate of return (IRR) method of investment appraisal

(4)

NPV and IRR compared

(10)

Independent projects with no capital rationing

(1)

Projects with unorthodox cash flows

(2)

Mutually exclusive investment opportunities with the same capital outlay

(4)

Mutually exclusive investment opportunities with different levels of capital outlay

(1)

Mutually exclusive investment opportunities with different lengths of lives

(1)

Investment opportunities with capital rationing

(1)

Summary and key points

(1)

Worked example

(2)

Questions

(1)

5 Investment decision making under conditions of uncertainty: problems and simple solutions

(18)

Introduction

(1)

Distinguishing between risk and uncertainty

(1)

Sources of risk and uncertainty

(1)

Attitudes towards risk

(1)

Techniques for assisting the decision maker when faced with risk and uncertainty

(9)

The expected NPV rule

(3)

The risk-adjusted discount rate approach

(1)

Example for risk-adjusted discount rates

(1)

Sensitivity analysis

(4)

Summary and key points

(1)

Worked examples

(3)

Questions

(1)

Notes

(1)

6 Investment decision making under conditions of uncertainty: more advanced solutions

(17)

Introduction

(1)

Decision tree analysis

(3)

Simulation models

(2)

Game-theoretic approaches

(7)

Example for game-theoretic approaches

(1)

(i) The Bayes-Laplace criterion

(1)

(ii) The maximax criterion

(1)

(iii) The maximin criterion

(1)

(iv) The Hurwicz criterion

(1)

(v) The minimax regret criterion

(1)

Summary of game-theoretic approaches

(1)

Summary and key points

(1)

Worked example

(2)

Questions

(1)

7 Investment appraisal and the capital-asset pricing model

(12)

Introduction

(1)

Distinguishing between types of risk

(1)

Why the distinction between systematic and unsystematic risk matters

(2)

Systematic risk and investment appraisal

(1)

Measuring systematic risk and the required rate of return

(2)

Difficulties in applying CAPM

100

(1)

The usefulness of CAPM

101

(1)

Summary and key points

101

(2)

Questions

103

(1)

Note

104

(1)

8 Capital rationing

105

(15)

Introduction

105

(1)

What is capital rationing?

106

(1)

Single-period capital rationing

107

(3)

Multi-period capital rationing

110

(5)

Summary and key points

115

(2)

Worked examples

117

(2)

Questions

119

(1)

9 The cost of capital

120

(15)

Introduction

120

(1)

Sources of long-term funds

121

(8)

Equity capital

121

(3)

Debt capital

124

(1)

The cost of equity capital

125

(1)

The cost of debt capital

126

(3)

The pool of funds concept and the weighted average cost of capital

129

(2)

The weighted average cost of capital (WACC)

129

(2)

Is there an optimal capital structure?

131

(1)

Summary and key points

132

(1)

Worked example

133

(1)

Questions

134

(1)

10 Dealing with inflation, taxation and the lease-versus-buy decision

135

(10)

Introduction

135

(1)

Inflation

136

(3)

Taxation

139

(2)

The lease-versus-buy decision

141

(1)

Summary and key points

142

(1)

Worked example

143

(1)

Questions

144

(1)

11 Project evaluation and the monitoring of performance

145

(4)

Introduction

145

(1)

The implementation of the project

145

(1)

Monitoring and remedial action

146

(1)

Monitoring and improving future decision making

147

(1)

Summary and key points

148

(1)

Questions

148

(1)

Table A: Present value of �1

149

(3)

Table B: Present value of an annuity of �1

152

(3)

References

155

(2)

Index

157


	Buy Textbooks Sell Textbooks College Apparel Shop by School Virtual Bookstores	Order Status Shipping Rates Return Policy Marketplace Info F.A.S.T.	Contact Us Privacy Policy Legal Notices Site Security Employment	Help Desk eCampus Blog Affiliate Program Bulk Orders College Marketing

Need Help? eService@ecampus.com Copyright© 1999-2008
.