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IIF Publications:  Capital Budgeting Decision Under Risk & Uncertainty By  J.D. Agarwal




List of Exhibits

1 Introduction
Background Plan of the Book
2 Nature and meaning of Capital Budgeting
Definition and the process
Classification of Capital Budgeting 
Importance of Capital Budgeting Decisions
Administrative Procedures of Capital Budgeting 
Long Range Planning
Policy Guidelines
Origination of Investment Proposals
Request Preparation
Short-Range Capital Budget
Capital Expenditure Approval
Control of Capital Expenditure
Post Completion Audit
Retirement and Disposal of Investment Projects
3 Techniques of Evaluating Capital Budgeting Decisions
Payback Period
Accounting Rate of Return
Discounted Cash flow method
Net Present Value method
internal Rate of Return method
Profitability Index method
Capital Rationing
Mathematical Programming methods
Linear Programming method
Integer Programming method
Goal Programming model
Risk Analysis in Capital Investment Decisions
Traditional Techniques of Risk Incorporation
Modified Payback period
Risk Adjusted Discount Rate
Certainty-Equivalent method
Statistical Techniques of Incorporating Risk
Expected monetary value approach
Standard Deviation Approach
Coefficient of Variation Approach
Cash flow Correlation Overtime
Independence of Cash flows overtime 
Dependence of Cash flows overtime 
(a) Perfect Correlation
(b) Moderate Correlation
Decision Tree Approach
Utility Theory Approach
Portfolio Approach 
Capital Asset Pricing model
Summary & Conclusions
4 Capital Budgeting Decision and Multiple Objectives 
CBD & Objectives of a firm : A Conceptual Framework
CBD & Multiple Objectives : A Conceptual Framework
CBD & Multiple Objectives : A Some Empirical Observations
An Aggregative Analysis
A Segregative Analysis
Analysis on the basis of paid-up Capital size
Analysis on the basis of sales size
Analysis of Foreign subsidiaries
Statistical Verification
Concluding Remarks
5 CBD, Multiple objectives and Indian Firms
Methodology and Decision Rules
Coefficient of Ratios in Maximal Criterion ( )
Coefficient of Ratios in Minimal Criterion ( )
Decision Rule (DR) 1
Decision Rule (DR) 2
Decision Rule (DR) 3

Analysis of Financial Objectives
Aggregative Analysis
Segregative Analysis of Multiple Objectives
(a) Industry-wise 
(b) Paid-up capital wise classification
(c) Sales turnover size-wise classification
(d) Foreign subsidiaries
Analysis of Non-Financial Objectives
A Statistical Analysis
Concluding Observations
6 Lexicographic Model of Ranking of Multiple objectives
Ranking of objectives: A Review of Literature
Prerequisites of the Model
(A) Binary Relations Ordering
(B) Lexicographic Ordering
(C) Value Judgment
The Model
Single objectives case
Two objectives case
Situation I: Strict Indifference
Situation II: Weak Preference
Situation III: Strict Preference
Three objective case

7 A Goal Programming Model for Capital Budgeting Decision
Formalism of a general Goal Programming Model
A Goal Programming Model for Capital Budgeting
Lorie-Savage Problem of Investment Proposals
Weingartner's Solution
Modified Investment Proposals
Hawkins and Adams Solution
Goal Programming Solution with priority coefficients
Goal Programming solution with Modified Priodirty Coefficients
8 A Stochastic Goal Programming Model for Capital 
Budgeting Decision Under Uncertainty
A Review of the literature
Stochastic Goal Programming Model
Computioanal Procedure
9 Summary and Conclusions
Some potential Areas for Future Research
Subject Index
Author Index
IV.I - Analysis of Firms pursuing Multiple/Single Goal(s)
IV.II - Values of Computed x2c and x2 0.05' x2 0.01(when the expected values of number of firms is in fractions)
IV.III - Values of Computed x2c and x2 0.05' x2 0.01(when the expect values of number of forms are converted in integers)
V.I - Showing ratios (Ri) and Coefficients of ratios ( )
V.II - Within and Between the group : Values
VII.I - Lorie-Savage Problem of Investment Proposals
VII.II - Weingratner's Solution
VII.III - Modified Investment Proposals
VII.IV - Hawkins and Adams Solution
VII.V - Goal Programming Solution with Priority Coefficients
VII.VI - Goal Programming Solution with Modified Priority Coefficients
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