- Investment
- Introduction to investment
- Conclusion
- Investment assumptions
- Introduction
- Time of investment and start of business
- Cash earnings
- Cash investments
- Taxes
- Interest amounts
- Relevant amounts
- None committed amounts
- Opportunity amounts
- Marginal amounts
- Discount rate
- Investment horizon
- Investment evaluation methods
- The Net Present Value Method
- Internal Rate of Return Method
- The Annuity Method
- The Pay-Back Method
- Investment motives
- Investment in additional capacity
- Investment in a new project
- Rationalization investments
- Critical values in investments
- Choosing between investment evaluation methods
- Investments and taxation
- Introduction
- General assumptions on taxes
- Investment and inflation
- Introduction
- Investment including inflation – one inflation rate
- Investment including inflation – multiple inflation rates
- Investment and working capital
- Introduction
- Including working capital in investment evaluations
- Replacement of investments
- Introduction
- The no-replacement situation
- The identical replacement situation
- Replacement of old technology with new technology
- What to include in real life?
- Financing
- Introduction
- Equity financing
- Debt financing
- Financing considerations
- Introduction
- Business environment
- Loan terms
- Amortization of loans
- Introduction
- Standing loan (bullet loan)
- Serial loan
- Annuity loan
- Evaluation of loans
- Introduction
- Evaluation of a standing loan (bullet loan)
- Evaluation of a serial loan
- Evaluation of an annuity loan
- Evaluation loans – overview
- Evaluation of other credit
- Introduction
- Overdraft accounts (non-scheduled amortization)
- Trade creditors
- Financial planning
- Introduction
- Finding the right financing package
- Evaluation of cost of the financial package
Content
Description
The book will introduce the reader to the following topics:
- The necessity for evaluation of investment and finance opportunities
- Most common motives behind investment
- Basic assumptions behind investment and finance evaluations
- Most common methods and techniques used for evaluation of investment and finance opportunities
- Pitfalls in methods and techniques for evaluation of investment and finance opportunities
- Planning of investment financing considering flexibility, cost and timing of liquidity