PUBLISHER : TATA MCGRAW HILL
ISBN-13 : 9780070077935
Edition : 7th
Language : English
Capital budgeting is the process of validating and planning an organization’s long term investments. It deals with all aspects of planning a company’s capital expenditure. This book covers the entire subject of capital budgeting, taking in all the various techniques and methods used.
The book is divided into seven parts, which are Planning, Analysis, Selection I, Selection II, Financing, Implementation, and Review. Besides these, there are three appendix sections, a bibliography, and a comprehensive index.
The first part, Planning, starts with an overview chapter that explains the concept of capital investments. The second chapter covers strategy and resource allocation. The next chapter covers generation and screening of project ideas.
The second part, Analysis, covers the topics market and demand analysis, technical analysis, financial estimates, and projections. The third part, Selection I, covers aspects of the capital budgeting process such as the time value of money, investment criteria, project cash flows, the cost of capital, and project risk analysis.
The fourth part, Selection II, covers concepts like project rate of return, special decisions situations, social cost benefits analysis, multiple projects and constraints, valuation of real options, judgmental, behavioral, strategic, and organizational considerations.
The fifth part, Financing, covers topics like financing of projects, financing infrastructural projects, venture capital, and private equity. The sixth part, Implementation, covers topics such as project management and network techniques for project management. The seventh part, Review, focuses on project review and administrative aspects.
The three appendix sections contain Tables, Assessing the Tax Burden, and Environmental Appraisal of Projects.
This edition of this popular book contains substantial revisions in many chapters and fifteen new sections. It also contains four new mini cases. Beside these, the book contains highlight boxes providing valuable insights and perspectives.
It also provides access to web resources for students and instructors.