Capital Budgeting with Financial Plans: An Introduction 1993 edition

Publisher Marketing: Long-term decision making is a vitally important management task to an enterprise. Capital Budgeting serves as the methodical basis to quantify the monetary consequences of these decisions. "Introduction to Capital Budgeting with Financial Plans" deals with financial planning. The material thus brought forward competes with the traditional methods of capital budgeting such as present value, annuity, intemal rate of retum, or the payback period. Financial planning has a clear advantage in that all presumptions made to support the traditional methods are brought out into the open. The slogan could be: "Explicate the implications!" The advantage of the concept is that it can be easily elaborated, while still remaining simple to comprehend. This is done by applying a spreadsheet method: Visualization Of Financial lmplications - VOFI. The technique ist as old as calculations of interest on a day-to-day basis. Hence critical comments regarding difficult computations are outdated when working with visualized plans. The book is a fictitious case study. In an easily accessible linguistic style, the Faustian struggle of a manager and bis advisor is traced through the contemplation of an investment decision. The reader -who plays an active part in the case study - follows the path from the simplest static approaches to the more sophisticated time-adjusted techniques, and finally leams to appreciate the visualized (computer aided) financial plans which include taxes."