9781641720953
Larsen and Keller Education
English
2019
Business and Management
219
145 $
Capital budgeting is a planning process that determines the worth of long-term investments from a firm's capitalization structure. Some investments that an organization makes can include new and old machinery installation and maintenance, new products and services, new research and development projects, etc. The primary objective of capital budgeting and investment analysis is to enhance the capital benefit and value for shareholders. Some of the methods used in capital budgeting include accounting rate of return, payback period, profitability index, etc. An important technique in capital budgeting is real options valuation or investment analysis, which involves the determination of the present value of options. This textbook elucidates the concepts and innovative models around prospective developments with respect to capital budgeting and investment analysis. The topics included herein are of utmost significance and bound to provide incredible insights to readers. This textbook is an essential guide for business professionals and financial planners, as well as students.