From the Inside Flap
Capital budgeting--the process of planning, analyzing, selecting, and managing capital investments--is one of the most challenging tasks in today's business world. With rapid advances in technology, shorter product life cycles, and global competition, managers now face very difficult decisions about whether long-term investments or capital expenditures are truly worth pursuing.
Capital Budgeting Valuation, part of the Robert W. Kolb Series in Finance, takes a comprehensive look at this complex discipline and shows you what it takes to make better decisions when considering a specific investment project for your organization. Filled with in-depth insights and practical advice, this book contains detailed discussions of essential capital budgeting components, key financial theories as well as empirical support for them, and how firms use these theories to solve problems and create wealth. Along the way, this reliable resource emphasizes how financially sound capital budgeting facilitates the process of value creation.
With contributed chapters from leading academics and practitioners from around the world, this reliable resource provides a synthesis of the current state of capital budgeting and puts a firm's financing decisions in perspective. Divided into seven comprehensive parts, it skillfully:
- Reveals the role that corporate strategy and governance can have in investment decisions
- Examines various methods of evaluating capital investments and explores capital budgeting under capital rationing
- Addresses the estimation of project cash flows and how to adjust for inflation when evaluating capital budgeting projects
- Outlines basic risk analysis techniques used in capital budgeting as well as methods for assessing political and country risk
- Introduces the concept of a real option and describes the most commonly examined real options and their applications in capital budgeting
- Details the different aspects of estimating the appropriate discount rate for use in the capital budgeting process
Capital Budgeting Valuation offers a wealth of useful information that will guide you through the complex maze of capital investment decisions in the real world. If you're looking to gain a better understanding of this discipline, this is the book you need to read.
DAVID L. H. KENT BAKER, PHD, CFA, CMA, is University Professor of Finance and Kogod Research Professor at the Kogod School of Business at American University, Washington, D.C. He has published extensively in leading academic and professional finance journals including the Journal of Finance, Journal of Financial and Quantitative Analysis, Financial Management, Financial Analysts Journal, and Journal of Portfolio Management. Recognized as one of the most prolific authors in finance during the past fifty years, Professor Baker has consulting and training experience with more than 100 organizations and has been listed in fifteen biographies.
PHILIP ENGLISH is an Assistant Professor of Finance and Real Estate at the Kogod School of Business, American University. He currently serves as Director of the Master of Science in Finance and Master of Science in Real Estate programs. Before pursuing a doctorate, English worked as the primary financial officer and director of product development for Campbell Classics, a Virginia-based manufacturing firm. Professor English's research interests focus on the role of the legal environment in emerging markets, corporate governance, and mutual fund regulation. He has published in the Journal of Financial Research, Journal of Corporate Finance, Journal of Law and Economics, and Emerging Markets Review.
