Capital Budgeting Valuation – Financial Analysis for Today′s Investment Projects

Acknowledgments ix
<p>1 Capital Budgeting: An Overview 1<br />H. Kent Baker and Philip English</p>
<p>PART I Foundation and Key Concepts 17</p>
<p>2 Corporate Strategy and Investment Decisions 19<br />Daniel Ferreira</p>
<p>3 Corporate Governance and Investment Decisions 37<br />Fodil Adjaoud, Dorra Charfi, and Lamia Chourou</p>
<p>PART II Capital Investment Choice 57</p>
<p>4 Measuring Investment Value: Free Cash Flow, Net Present Value, and Economic Value Added 59<br />Tom Arnold and Terry Nixon</p>
<p>5 Alternative Methods of Evaluating Capital Investments 79<br />Tom Arnold and Terry Nixon</p>
<p>6 Capital Rationing for Capital Budgeting 95<br />Alexander Br&uuml;ggen</p>
<p>7 Analyzing Foreign Investments 111<br />Wim Westerman and John Henry Hall</p>
<p>8 Postcompletion Auditing of Capital Investments 131<br />Jari Huikku</p>
<p>9 Capital Budgeting Techniques in Practice: U.S. Survey Evidence 151<br />Tarun K. Mukherjee and Naseem M. Al Rahahleh</p>
<p>PART III Project Cash Flows and Inflation 173</p>
<p>10 Estimating Project Cash Flows 175<br />Kyle Meyer and Halil Kiymaz</p>
<p>11 Capital Budgeting and Inflation 197<br />Ignacio V&acute;elez–Pareja and Joseph Tham</p>
<p>PART IV Risk and Investment Choice 215</p>
<p>12 Basic Risk Adjustment Techniques in Capital Budgeting 217<br />John H. Hall and Wim Westerman</p>
<p>13 Capital Budgeting with Political/Country Risk 241<br />Yacine Belghitar and Ephraim Clark</p>
<p>14 Risk Management in Project Finance 259<br />Stefano Gatti and Stefano Caselli</p>
<p>15 Risk Simulation Concepts and Methods 279<br />Tom Arnold and David North</p>
<p>PART V Real Options and Project Analysis 299</p>
<p>16 Real Options Analysis: An Introduction 301<br />Tom Arnold and Bonnie Buchanan</p>
<p>17 Applications of Real Options Analysis 321<br />Tom Arnold and Bonnie Buchanan</p>
<p>PART VI Estimating the Project Cost of Capital 337</p>
<p>18 Cost of Capital: An Introduction 339<br />Octavian Ionici, Kenneth Small, and Frank D Souza</p>
<p>19 Using the Capital Asset Pricing Model and Arbitrage Pricing Theory in Capital Budgeting 363<br />S. David Young and Samir Saadi</p>
<p>20 Financing Mix and Project Valuation: Alternative Methods and Possible Adjustments 381<br />Alex Pierru and Denis Babusiaux</p>
<p>PART VII Special Topics 403</p>
<p>21 Capital Budgeting for Government Entities 405<br />Davina F. Jacobs</p>
<p>22 Decision Making Using Behavioral Finance for Capital Budgeting 421<br />Yuri Biondi and Giuseppe Marzo</p>
<p>23 Merger and Acquisition Pricing: The Valuation of Synergy 445<br />Rainer Lenz</p>
<p>24 Multicriteria Analysis for Capital Budgeting 463<br />Fernando R. Fernholz</p>
<p>Answers to Discussion Questions 483</p>
<p>Index 507</p>