Investment appraisal : methods and models /
Götze, Uwe,
Investment appraisal : methods and models / Uwe Götze, Deryl Northcott, Peter Schuster. - Second edition. - xv, 366 pages : illustrations ; 24 cm. - Springer texts in business and economics, 2192-4333 . - Springer texts in business and economics. .
Includes bibliographical references and index.
Part I. Introduction : -- 1. Capital Budgeting and Investment Decisions -- Part II. Basic Methods of Investment Appraisal : -- 2. Static Methods -- 3. Discounted Cash Flow Methods -- Part III. Advanced Methods and Applications of Investment Appraisal : -- 4. Compounded Cash Flow Methods -- 5. Selected Further Applications of Investment Appraisal Methods -- Part IV. Multi-Criteria Methods and Simultaneous Decision-Making : -- 6. Multi-criteria Methods -- 7. Simultaneous Decision-Making Models -- Part V. Methods and Models that Incorporate Uncertainty : -- 8. Methods and Models for Appraising Investment Projects Under Uncertainty -- 9. Analysing Investment Programmes Under Uncertainty -- -- Introduction : -- -- Capital Budgeting and Investment Decisions -- Characteristics and Classification of Investment Projects -- Investment Planning and Investment Decisions -- Investment Planning as Part of the Management Process -- Investment Planning as Part of the Capital Investment Decision-Making Process -- Strategic Analysis Tools Supporting the Capital Investment Decision-Making Process -- Investment Appraisal Methods as Tools for Investment Planning -- Basic Methods of Investment Appraisal : -- -- Static Methods -- Cost Comparison Method -- Profit Comparison Method -- Average Rate of Return Method -- Static Payback Period Method -- -- Discounted Cash Flow Methods -- Introduction -- Net Present Value Method -- Annuity Method -- Internal Rate of Return Method -- Dynamic Payback Period Method -- Data Collection -- Advanced Methods and Applications of Investment Appraisal : -- -- Compounded Cash Flow Methods -- Compound Value Method -- Critical Debt Interest Rate Method -- Visualisation of Financial Implications (Vo FI) Method -- -- Selected Further Applications of Investment Appraisal Methods -- Income Taxes and Investment Decisions -- Taxes and the Net Present Value Method -- Taxes and the Visualisation of Financial Implications (Vo FI) Method -- The Assessment of Foreign Direct Investments -- Special Characteristics of Foreign Direct Investments -- Net Present Value Model and the Assessment of Foreign Direct Investments -- The Visualisation of Financial Implications (Vo FI) Method and the Assessment of Foreign Investments -- Models for Economic Lifeand Replacement Time Decisions -- Overview -- Optimum Economic Life Without Subsequent Projects -- Optimum Economic Lifewith a Limited Number of Identical Subsequent Projects -- Optimum Economic Lifewith an Unlimited Number of Identical Subsequent Projects -- Optimum Replacement Time with an Unlimited Number of Identical Subsequent Projects -- Optimum Replacement Time with a Limited Number of Non-identical Subsequent Projects -- Models to Determine Optimum Investment Timing -- Multi-Criteria Methods and Simultaneous Decision-Making : -- -- Multi-criteria Methods -- Introduction -- Utility Value Analysis -- Analytic Hierarchy Process -- Multi-attribute Utility Theory -- PROMETHEE -- -- Simultaneous Decision-Making Models -- Static Model for Simultaneous Investment and Financing Decisions (DEAN Model) -- Multi-tier Model of Simultaneous Investment and Financing Decisions (HAX and WEINGARTNER Model) -- Multi-tier Model of Simultaneous Investment and Production Decisions (Extended FORSTNER and HENN Model) -- Methods and Models that Incorporate Uncertainty : -- -- Methods and Models for Appraising Investment Projects Under Uncertainty -- Decision Theory -- Risk-Adjusted Analysis -- Sensitivity Analysis -- Risk Analysis -- Decision-Tree Method -- Options Pricing Models -- -- Analysing Investment Programmes Under Uncertainty -- Overview -- Portfolio Selection -- Flexible Planning. Part I. 1. 1.1. 1.2. 1.2.1. 1.2.2. 1.2.3. 1.3. Part II. 2. 2.1. 2.2. 2.3. 2.4. 3. 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. Part III. 4. 4.1. 4.2. 4.3. 5. 5.1. 5.1.1. 5.1.2. 5.2. 5.2.1. 5.2.2. 5.2.3. 5.3. 5.3.1. 5.3.2. 5.3.3. 5.3.4. 5.3.5. 5.3.6. 5.4. Part IV. 6. 6.1. 6.2. 6.3. 6.4. 6.5. 7. 7.1. 7.2. 7.3. Part V. 8. 8.1. 8.2. 8.3. 8.4. 8.5. 8.6. 9. 9.1. 9.2. 9.3.
This book provides an introduction to investment appraisal and presents a range of methods and models, some of which are not widely known, or at least not well covered by other textbooks. Each approach is thoroughly described, evaluated and illustrated using examples, with its assumptions and limitations analyzed in terms of their implications for investment decision-making practice. Investment decisions are of vital importance to all companies. Getting these decisions right is crucial but, due to a complex and dynamic business environment, this remains a challenging management task. Effective appraisal methods are valuable tools in supporting investment decision-making. As organisations continue to seek a competitive edge, it is increasingly important that management accountants and strategic decision-makers have a sound knowledge of these tools.
3662458500 9783662458501
Investments--Decision making
Business enterprises--Finance--Decision making.
HG4515
332.67253
Investment appraisal : methods and models / Uwe Götze, Deryl Northcott, Peter Schuster. - Second edition. - xv, 366 pages : illustrations ; 24 cm. - Springer texts in business and economics, 2192-4333 . - Springer texts in business and economics. .
Includes bibliographical references and index.
Part I. Introduction : -- 1. Capital Budgeting and Investment Decisions -- Part II. Basic Methods of Investment Appraisal : -- 2. Static Methods -- 3. Discounted Cash Flow Methods -- Part III. Advanced Methods and Applications of Investment Appraisal : -- 4. Compounded Cash Flow Methods -- 5. Selected Further Applications of Investment Appraisal Methods -- Part IV. Multi-Criteria Methods and Simultaneous Decision-Making : -- 6. Multi-criteria Methods -- 7. Simultaneous Decision-Making Models -- Part V. Methods and Models that Incorporate Uncertainty : -- 8. Methods and Models for Appraising Investment Projects Under Uncertainty -- 9. Analysing Investment Programmes Under Uncertainty -- -- Introduction : -- -- Capital Budgeting and Investment Decisions -- Characteristics and Classification of Investment Projects -- Investment Planning and Investment Decisions -- Investment Planning as Part of the Management Process -- Investment Planning as Part of the Capital Investment Decision-Making Process -- Strategic Analysis Tools Supporting the Capital Investment Decision-Making Process -- Investment Appraisal Methods as Tools for Investment Planning -- Basic Methods of Investment Appraisal : -- -- Static Methods -- Cost Comparison Method -- Profit Comparison Method -- Average Rate of Return Method -- Static Payback Period Method -- -- Discounted Cash Flow Methods -- Introduction -- Net Present Value Method -- Annuity Method -- Internal Rate of Return Method -- Dynamic Payback Period Method -- Data Collection -- Advanced Methods and Applications of Investment Appraisal : -- -- Compounded Cash Flow Methods -- Compound Value Method -- Critical Debt Interest Rate Method -- Visualisation of Financial Implications (Vo FI) Method -- -- Selected Further Applications of Investment Appraisal Methods -- Income Taxes and Investment Decisions -- Taxes and the Net Present Value Method -- Taxes and the Visualisation of Financial Implications (Vo FI) Method -- The Assessment of Foreign Direct Investments -- Special Characteristics of Foreign Direct Investments -- Net Present Value Model and the Assessment of Foreign Direct Investments -- The Visualisation of Financial Implications (Vo FI) Method and the Assessment of Foreign Investments -- Models for Economic Lifeand Replacement Time Decisions -- Overview -- Optimum Economic Life Without Subsequent Projects -- Optimum Economic Lifewith a Limited Number of Identical Subsequent Projects -- Optimum Economic Lifewith an Unlimited Number of Identical Subsequent Projects -- Optimum Replacement Time with an Unlimited Number of Identical Subsequent Projects -- Optimum Replacement Time with a Limited Number of Non-identical Subsequent Projects -- Models to Determine Optimum Investment Timing -- Multi-Criteria Methods and Simultaneous Decision-Making : -- -- Multi-criteria Methods -- Introduction -- Utility Value Analysis -- Analytic Hierarchy Process -- Multi-attribute Utility Theory -- PROMETHEE -- -- Simultaneous Decision-Making Models -- Static Model for Simultaneous Investment and Financing Decisions (DEAN Model) -- Multi-tier Model of Simultaneous Investment and Financing Decisions (HAX and WEINGARTNER Model) -- Multi-tier Model of Simultaneous Investment and Production Decisions (Extended FORSTNER and HENN Model) -- Methods and Models that Incorporate Uncertainty : -- -- Methods and Models for Appraising Investment Projects Under Uncertainty -- Decision Theory -- Risk-Adjusted Analysis -- Sensitivity Analysis -- Risk Analysis -- Decision-Tree Method -- Options Pricing Models -- -- Analysing Investment Programmes Under Uncertainty -- Overview -- Portfolio Selection -- Flexible Planning. Part I. 1. 1.1. 1.2. 1.2.1. 1.2.2. 1.2.3. 1.3. Part II. 2. 2.1. 2.2. 2.3. 2.4. 3. 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. Part III. 4. 4.1. 4.2. 4.3. 5. 5.1. 5.1.1. 5.1.2. 5.2. 5.2.1. 5.2.2. 5.2.3. 5.3. 5.3.1. 5.3.2. 5.3.3. 5.3.4. 5.3.5. 5.3.6. 5.4. Part IV. 6. 6.1. 6.2. 6.3. 6.4. 6.5. 7. 7.1. 7.2. 7.3. Part V. 8. 8.1. 8.2. 8.3. 8.4. 8.5. 8.6. 9. 9.1. 9.2. 9.3.
This book provides an introduction to investment appraisal and presents a range of methods and models, some of which are not widely known, or at least not well covered by other textbooks. Each approach is thoroughly described, evaluated and illustrated using examples, with its assumptions and limitations analyzed in terms of their implications for investment decision-making practice. Investment decisions are of vital importance to all companies. Getting these decisions right is crucial but, due to a complex and dynamic business environment, this remains a challenging management task. Effective appraisal methods are valuable tools in supporting investment decision-making. As organisations continue to seek a competitive edge, it is increasingly important that management accountants and strategic decision-makers have a sound knowledge of these tools.
3662458500 9783662458501
Investments--Decision making
Business enterprises--Finance--Decision making.
HG4515
332.67253