Capital Budgeting, livre ebook

Capital budgeting is an important part of the financial management of a business organization. It is a process that business houses use to evaluate an investment proj-
ect. The decision of whether to accept or deny an investment project is capital budgeting decision. Capital budgeting is important because it determines the long-term
economic and nancial pro tability of any investment project. It lays down the future success of a business. Capital Budgeting aims to develop not only an understanding of the concepts of capital budgeting but also to provide its practical application to help students learn both theory and practice of capital budgeting used in the financial management of a business organization. It analyzes the capital budgeting practices of corporate enterprises in India in diverse sectors, on comparative basis, in order to
provide the reader a better insight into the various issues and challenges regarding capital budgeting management.
Preface ..................................................................................................ix
Section 1 Introduction .................................................................. 1
Chapter 1 Nature of Financial Management ......................................3
Section 2 Capital Budgeting Decision & Appraisal ....................... 9
Chapter 2 Capital Budgeting: Nature & Scope ................................11
Chapter 3 Project Feasibility ............................................................19
Chapter 4 Project Management Techniques .....................................33
Chapter 5 Social-Costs Benefit Analysis ...........................................39
Section 3 Capital Budgeting Management ................................... 45
Chapter 6 Time Value of Money ......................................................47
Chapter 7 Determination of Cash Flows ..........................................51
Chapter 8 Capital Budgeting Appraisal Methods .............................63
Chapter 9 Risk Analysis in Capital Budgeting ..................................89
Chapter 10 Capital Budgeting Under Capital Rationing..................107
Section 4 Financing Decision ..................................................... 115
Chapter 11 Cost of Capital ..............................................................117
Section 5 International Perspective ............................................ 127
Chapter 12 Capital Budgeting for the Multinational Firms ..............129
Chapter 13 Post Completion Auditing of Capital Budgeting
Decision ........................................................................139
Chapter 14 Capital Investment Issues and Challenges .....................147
Section 6 Case Studies ............................................................... 153
Chapter 15 Capital Budgeting Practice of Reliance Industries Ltd ...155
Chapter 16 Capital Budgeting of Indian PSUs.................................167
Chapter 17 Capital Investment Practices of Oil Sector in India .......177
Key Terms ...........................................................................................183
Review Questions ................................................................................187
Test Yourself —Problems & Solutions ...................................................193
Bibliography .......................................................................................209
Index .................................................................................................211