Managerial Finance: Volume 6 Issue 2

Determinants of Investment—An Economist's View

Laurence Copeland

This article stresses the importance of investment to the firm and the economy. The author argues that the level of investment is largely determined by the balance between the…

The Capital Investment Process

Richard Dobbins, Richard Pike

The corporate manager could easily be forgiven for assuming that capital budgeting is primarily concerned with the selection of an appropriate evaluation technique. Most texts on…

Investment Planning and Control A Guideline

G.H. Lawson, R.H. Pike

This article gives guidelines to accountants on the practical aspects of sound capital investment planning and control systems.

DCF Methods of Investment Appraisal

W.K.H. Fung, R.C. Stapleton

Given the range of tools and techniques available for appraising capital projects, financial managers are confronted with the problem of selecting appropriate techniques that…

Risk Analysis for Capital Investment Decisions

W.K.H. Fung, R.C. Stapleton

There are two ways in which the risk of a capital project can be described. This article outlines these two approaches: Sensitivity Analysis and Probability Analysis, and…

The Accounting Rate of Return and the DCF Rate of Return

G.H. Lawson, A.W. Stark

The accounting rate of return on capital employed (RRCE) still enjoys extraordinary popularity as a criterion of achieved financial performance, as a divisional and corporate…

Calculating a Project's Hurdle Rate

Richard Pike

Of vital importance to the long‐term profitability and level of investment in a company or indeed an economy is the determination of reliable hurdle rates, or minimum required…

Valuing a Going Concern — an Exposure Draft for Accountants.

G.H. Lawson

This and the following article are published at the suggestion of the Institute of Chartered Accountants in Scotland in the hope that they will stimulate greater interest on the…

The Valuation of a Going Concern on a Cashflow Basis

G.H. Lawson

This article contains a specification of an analytical model, occasionally described as a “fundamentalist” approach, which reflects the principles and recommendations contained in…