Capital Budgeting

CHAPTER 9 Net Present Value and Other Investment Criteria The most important subject in this chapter is net present value. Chapter 9 compares and contrasts net present value with other methods for selecting among alternative investment proposals.

CHAPTER 10 Making Capital Investment Decisions This chapter describes how to actually do a net present value and discounted cash flow analysis. The primary aim of the chapter is to describe how to identify a project's incremental cash flows. Chapter 10 also discusses how to handle such issues as sunk costs, opportunity costs, financing costs, net working capital, and erosion.

CHAPTER 11 Project Analysis and Evaluation This chapter discusses problems regarding the reliability of net present value estimates. It also describes some important tools for project analysis, such as break-even analysis, operating leverage, and sensitivity analysis.

Ross et al.: Fundamentals I IV. Capital Budgeting I 9. Net Present Value and I I © The McGraw-Hill of Corporate Finance, Sixth Other Investment Criteria Companies, 2002

Edition, Alternate Edition

Ross et al.: Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition

IV. Capital Budgeting

S. Net Present Value and Other Investment Criteria

© The McGraw-Hill Companies, 2002

Ross et al.: Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition

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