Investment Decision Making in the Private and Public Sectors - Hardcover

Beenhakker, Henri L.

Hardcover

ISBN 10: 1567200281 ISBN 13: 9781567200287

Publisher: Praeger, 1996

Synopsis

The analysis of investment decisions today draws upon a wide range of sources, from economics and finance to engineering economy and operations research. Dr. Beenhakker's book reflects this interdisciplinary approach, and without assuming prior knowledge of these fields or a sophisticated understanding of mathematics, provides professionals and upper-level students with the concepts and tools they need to make englightened investments in new ventures. Arranged to permit rapid review of an entire investment subject and written in a modular manner to allow readers to jump among chapters without losing their bearings, the book will help business managers deal intelligently with corporate financial and economic issues and government contracts. It will also help planners of the public sector incorporate the views of private industry in their own investment decision making. A unique, readable, comprehensive treatment for investment professionals and also for academics and their graduate-level students.

The analysis of investment decisions today draws upon a wide range of sources, from economics and finance to engineering economy and operations research. Dr. Beenhakker's book reflects this interdisciplinary approach, and without assuming prior knowledge of these fields or a sophisticated understanding of mathematics, provides professionals and upper-level students with the concepts and tools they need to make enlightened investments in new ventures. Arranged to permit rapid review of an entire investment subject and written in a modular manner to allow readers to jump among chapters without losing their bearings, the book will help business managers deal intelligently with corporate financial and economic issues and government contracts. It will also help planners of the public sector incorporate the views of private industry in their own investment decision making. A unique, readable, comprehensive treatment for investment professionals and also for academics and their graduate-level students.

Dr. Beenhakker begins with a study of financial statements and ratios, and covers annual reports, balance sheets, income and retained earnings statements, cash flow statements, and financial ratios. In Chapter 2 he looks at the valuation and investment problems when shares are under- or overvalued. He moves then to derivative securities, and in Chapter 4 to a discussion of diversification planning. In Chapter 5 he takes up the cost of capital, with special attention to risk, uncertainty, and certainty, and in Chapter 6 covers that and other topics in the context of project appraisal. Chapter 7 digs into programming and planning and covers topics such as the marginal cost of capital in capital budgeting, the optimal capital budget, capital rationing, and economic development plans. The book ends with a discussion of cost minimization problems, such as leasing and purchasing, replacement investments, expansion investments, decision trees, and the problem of how to ship quantities from supply to demand centers such that the total cost of transport is minimized. Five appendices provide readers with various tables and formulas to assist in their own calculations.

About this title

Book Description:

A unique, interdisciplinary, and comprehensive text for public and private sector professionals with only some knowledge of mathematics, to help them make enlightened decisions with regard to investments in new ventures.

About the Author:

HENRI L. BEENHAKKER is a principal economist at the World Bank and Adjunct Professor, School of Advanced International Studies, Johns Hopkins University. With professional experience in economics, finance, and engineering, he has assisted major industrial and governmental organizations here and abroad in their long-range planning. Dr. Beenhakker has served as Chairman, Department of Industrial Management, University of Iowa, and was also employed by Stanford Research Institute. He is the author of four textbooks and more than 35 articles published in leading business and economics journals.

About this edition

• Publisher: Praeger
• Publication date: 1996
• ISBN 10: 1567200281
• ISBN 13: 9781567200287
• Binding: Hardcover
• Number of pages: 264