Capital Budgeting

Christophe Thibierge and Andrew Beresford
Additional contact information
Christophe Thibierge: ESCP Europe
Andrew Beresford: ESCP Europe

Chapter 3 in A Practical Guide to Corporate Finance, 2015, pp 74-102 from Palgrave Macmillan

Abstract: Abstract Thinking about whether to go to college, deciding whether to buy a company or choosing between two machine tools: these are all investment decisions. You try to make the best decision: the one that is most profitable for the company or for yourself. When choosing investments, we rely on decision-making criteria (not too difficult) and on a forecast of future cash flows (a little more complicated …). In Chapter 1 we saw how to analyse a company’s financial statements and we ended with cash flows—the lifeblood of the company. We will now use this knowledge to make cash flow forecasts. In Chapter 2 we suffered through a few financial calculations, including discounting. We will make use of this knowledge in our decision-making criteria.

Keywords: Cash Flow; Work Capital Requirement; Payback Period; Future Cash Flow; Cash Flow Forecast (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-49254-8_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137492548

DOI: 10.1057/9781137492548_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().