Capital Asset Investment: Strategy, Tactics and Tools
Included in the arsenal of capital investment tools in this book are concepts of proven usefulness, such as the MAPI method, no longer available in other works on the topic of capital budgeting, and other topics not covered elsewhere, such as abandonment analysis.
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.
Appendix: The problem of mixed cash flows III—a two-stage method of analysis.
Alternative investment measures.
Project abandonment analysis.
Multiple project capital budgeting.
Appendix to 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.
Appendix: Financial mathematics tables and formulas.
From 1982 through 1998 he served as founding editor of the Journal of Financial Engineering (now merged with the Journal of Derivatives), where he is now an associate editor. He is also a member of the editorial boards for the Journal of Financial Research and The Global Finance Journal, and advisor on the editorial board of the Journal of Taxation of Financial Institutions. He is the author of several books including Analyzing and Forecasting Futures Prices (John Wiley & Sons Ltd.)