Improving the Informational Content of the Simple Capital Budgeting Model (Classic Reprint) - Softcover
Synopsis
Enhancing capital budgeting with a probability view helps you see risk and real-world choices. This concise guide compares two project options and shows how adding uncertainty changes the decision, beyond traditional net present value comparisons.
The text reframes a common decision problem by holding the discount rate steady and examining how varying sales affect which project is best. It introduces a simple way to model risk using normal sales distributions and a clear method to estimate spread when data is limited.
- How net present value changes with different sales levels, not just different discount rates
- What "cross-over" points and break-even levels mean for choosing between projects
- How to quantify risk with a slope-based risk coefficient and compare risk preferences
- Practical steps to incorporate probability distributions and a crude standard deviation estimate
Ideal for readers seeking a pragmatic, risk-aware approach to capital budgeting and decision making.
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Improving the Informational Content of the Simple Capital Budgeting Model
Print on DemandSeller: Forgotten Books, London, United Kingdom
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Paperback. Condition: New. Print on Demand. This book enhances the traditional capital budgeting model, a long-term decision analysis tool, typically taught in accounting courses, and addresses a major inadequacy of dealing with conditions of uncertainty. The author examines the impact of treating cash inflows as a random variable, rather than a single-point estimate, and includes a method of attaching a probabilistic dimension to the analysis, making it more comprehensive and realistic. With an array of mathematical formulas and detailed explanations, the book challenges the traditional approach and provides valuable insights for decision-makers looking to improve the information content of their capital budgeting models. This book is a reproduction of an important historical work, digitally reconstructed using state-of-the-art technology to preserve the original format. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in the book. print-on-demand item. Seller Inventory # 9781334296147_0
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Improving the Informational Content of the Simple Capital Budgeting Model Classic Reprint
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PAP. Condition: New. New Book. Shipped from UK. Established seller since 2000. Seller Inventory # LW-9781334296147
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Improving the Informational Content of the Simple Capital Budgeting Model Classic Reprint
Seller: PBShop.store UK, Fairford, GLOS, United Kingdom
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PAP. Condition: New. New Book. Shipped from UK. Established seller since 2000. Seller Inventory # LW-9781334296147
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Improving the Informational Content of the Simple Capital Budgeting Model (Classic Reprint)
Print on DemandSeller: Revaluation Books, Exeter, United Kingdom
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Paperback. Condition: Brand New. 28 pages. 8.66x5.67x0.24 inches. This item is printed on demand. Seller Inventory # zk1334296146
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