From the Paper
"This research examines the process of business capital investment under conditions of uncertainty. Capital investment decision-making methods that accommodate conditions of uncertainty are reviewed.

Background
Effective and efficient decision-making is important in the capital investment process because financial resources are typically scarce.. Conditions of uncertainty, competing goals, and utility tend to complicate the decision-making process.. The selection from among alternatives in the capital investment process is generally referred to as capital budgeting. Capital budgeting involves the making of investment decisions related to fixed assets ... "

Abstract
In this paper, the author looks at a capital investment decision that has to be made at Silicon Arts, Inc. The paper runs a few simulations with assumptions made by the author, based on the projections in the marketing research report and expert opinions that are available related to the investment alternatives. Once the author decides which investment to go with, the risks are analyzed and steps to mitigate the risks are discussed.

From the Paper
"In this document the author will be looking at the capital budgeting simulation for Silicon Arts Inc, and the risks involved in the investment decisions that have to be made. Then the author will look at the steps that can be taken to mitigate these risks and concludes by summarizing the findings and the solutions.
"Here we look at the two options Silicon Arts Inc (SAI) has available to it for investment in the coming year. The chairman of the company wants SAI..."

Tags:investment, risk, mitigation

Abstract
This paper provides the calculations for some estimates of cost pertaining to business operations. Additionally, the flow of capital into and out of various markets is examined in its relationship with the theory of comparative advantage and that funds are following low wage/low cost production markets. The paper shows how funds are moving to developing and emerging markets as never before in the form of foreign direct investment, outsourcing, and offshoring.

From the Paper
"This document provides the calculations for some estimates of cost pertaining to business operations. Additionally, the flow of capital into and out of various markets is examined in its relationship with the theory of comparative advantage and that funds are following low wage/low cost production markets. Thus, funds are moving to developing and emerging markets as never before in the form of foreign direct investment, outsourcing, and offshoring."

Tags:investment, decisions, calculations

Abstract
This paper addresses how financial managers make the tough decisions between interesting and profitable projects for a corporation to invest in. The paper presents a two-part case study. Part I addresses the purchase of new equipment. It presents an analysis, using net present value (NPV), internal rate of return (IRR) and payback and discusses how to determine if this new machine purchase is one that the company should pursue. Part II discusses what method (NPV or others) is the best method to use for capital budgeting purposes.

Table of Contents:
Part I
Part II

From the Paper
"If two investments, X, and Y, are mutually exclusive, then accepting one of them means we cannot accept the other. Given that, a question always arise, as to which one is best? The answer is simple though: the best one is the one with the largest NPV. Can we also say that the best one is the one with the highest IRR? The answer is no. As we have stated earlier, the IRR is biased towards projects with higher initial cash flows, hence the IRR would be higher for those projects whose initial cash flows are higher, yet that does not necessarily mean that those projects would have the higher NPV. Here, we must consider a very important point: the bottom line for any capital budgeting decision is accepting the project that would create the highest added value for shareholders, hence the higher the NPV, the more attractive the investment (Ryan, 2002)."

Tags:IRR, NPV, payback, investment

Abstract
The paper explores the factors that go into investment decisions, in an attempt to demonstrate how investment expenditure can be stimulated. The paper focuses on the courier industry and identifies the variables that impact investment decisions, including the firm's expected future economic performance, its competitive position and the cost and availability of capital.

From the Paper
"Investment expenditures represent the corporate world's spending, and are a significant component of the GDP. It is also a volatile component. There are a wide range of considerations that go into the investment decisions that companies face, from their competitive situation to the economic outlook for their industries to the availability and affordability of financing. As governments seek to pull the world's economies out of recession, they often approach the issue from the supply side, using the tools at their disposal to attempt to stimulate investment in the corporate sector. However, the effectiveness of these tools is not universal. Under some conditions, they work well; yet under other conditions, such as the current ones, they are less successful at providing economic stimulus."

Tags:cost, capital, finance, supply, demand, capacity, interest, returns

Abstract
This paper examines the valuation techniques for internal and external investment strategies based on concepts introduced in the Silicon Arts, Inc. (SAI) Capital Budgeting Simulation. The paper also examines the risks associated with investment decisions. The author reviews discounted cash flow (DCF), relative valuation, and contingent claim valuation, which are three valuation techniques, and examines the meaning of business, valuation and force of sale risks. The paper concludes that, regardless if the risk is at the operational level or because of time constraints, mitigation and assessments techniques are required to avoid significant losses. The DPV formula is included in a footnote.

Table of Contents:
Valuation Techniques
Managing Investment Risk
Conclusion

From the Paper
"Often, this practice is used as a means of forecasting. While industry analysts have made healthy salaries by making market announcements such as earnings forecasts and buy/sell recommendations, little to no evidence is available to show that investors have made significantly more money by following the advice of these analysts. This strategy is also a form of environment scanning that collects subjective and objective information for strategic and tactical purposes. Therefore, this approach can be helpful in making long-term projections, but shouldn't be the sole strategy used in making important financial decisions."

Tags:historical, forecasted future value, mismanagement, pricing model

Abstract
This paper discusses capital budgeting within the recreation industry. It discusses the areas that businesses need to focus on in order to be competitive, such as corporate culture, product mix, prices, promotion strategy and the place where the company competes. The paper presents City Point Club as an example to describe strategic investment decisions and capital budgeting.

From the Paper
"In order to compete in the tightening market for almost every industry, each big and (even at a greater degree) small company must constantly improve the business mix of the company, corporate culture, product mix, prices, promotion strategy, place where it competes and the other essential attributes. In order to fulfill these tasks, the management must constantly have sufficient resources to be able to single out promising innovative investment ideas, implement them and then receive the rewards of the profits . The management must always be at least two steps ahead of the competition and of the tastes and perceptions of the customers in order to be able to satisfy the changed demand of the sophisticated clientele when the tastes shift."

Tags:leisure, corporate, promotion

Abstract
This paper explains that the extremely competitive contemporary business environment forces entrepreneurs to develop and implement the best strategy to increase profitability thus ensuring survival. Next, the author reviews the case of the North Sea Oil organization, which must choose between two investment projects based on which best supports the organization's goals. To make this decision, the paper relates detailed use of the financial tools of weighted average costs of capital, net present value and internal rate of return alongside capital rationing constraint. Tables, and formulas and calculations for each situation are included in the paper.

Table of Contents:
Introduction
The Situation
Analysis of Investment Projects
Weighted Average Cost of Capital
Net Present Value
Internal Rate of Return
The Selected Investment Project
Summary

From the Paper
"The Weighted Average Cost of Capital is a crucial element in the analysis of North Sea Oil's investment alternatives for the simple reason that the organization relies heavily on both debt and equity to finance either of the projects. In this order of ideas, the WACC is used to identify the actual costs of the capital used in order to reveal if it is profitable to engage in a given investment project. Investopedia (2009) defines the weighted average cost of capital as the "calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All capital sources - common stock, preferred stock, bonds and any other long-term debt - are included in a WACC calculation. All else help equal, the WACC of a firm increases as the beta and rate of return on equity increases, as an increase in WACC notes a decrease in valuation and a higher risk."
Below is the formula at the basis of the WACC calculation:
"Where:
E = market value of organizational equity
V = E + D
Re = cost of equity
D = market value of organizational debt
Rd = cost of debt
Tc = corporate tax rate
Considering a corporate tax of 15 percent, the Weighted Average Cost of Capital for North Sea Oil's two investment alternatives can be calculated as follows:"

Tags:revenue, investment projects, target capital structure, cash inflows, modifications

Abstract
This paper analyzes why Thailand may be considered better for direct foreign investment than Ghana. The paper discusses exchange rate data, capital sources, sensitivity analysis, alternative investment and financing decisions, capital budgeting and contingency plans. It looks at the risks that may be involved with direct foreign investment in Thailand and describes the rationale used in the selection of Thailand as the clear choice for an investment.

Outline:
Country Selection
Exchange Rate
Capital Sources
Sensitivity Analysis
Alternative Investment/Financing Decisions
Capital Budget
Contingency
Conclusion

From the Paper
"As is readily apparent, decisions as to what country to select when considering a direct foreign investment are often highly complicated. Additionally, even when a country is selected, a multitude of complex factors make up the various strategies that a firm must implement to hedge the various risks involved in conducting business overseas. With regard to the service firm, the decision was made to expand operations in the country of Thailand. With a healthier economy, a relatively stable government, and friendlier business environment, Thailand was determined to offer better investment opportunities than Ghana. This is not to imply that Ghana would not constitute a wise investment decision, as many risks inherent to the country could be mitigated; however, Thailand's socio-economic, political, and exchange rate circumstances were determined to be more favorable than Ghana's."

Tags:exchange, rate, data, capital, sensitivity, investment, financing

Abstract
This report looks at the feasibility of an equity investment by Thomas Venture Capital in Contiki Holdings as it expands into the outbound tour operating business. The report is structured in sections, each of which examines a different aspect of the decision. The first section provides a brief historical overview of the business, including its evolution to its current state. The second section provides a review of the market as a whole, concentrating on statistical data regarding volume and spending of travelers from the UK, as well as on the future growth trends within the industry. The third section looks at the profitability of the sector by examining the success or lack thereof of some major players in the market. The final section makes some conclusions based on the information included in the report and makes recommendations on whether the investment should be made.

From the Paper
"The UK travel industry is regulated by the Association of British Travel Agents (ABTA), which came into existence in 1950 and since has overseen the developments in the travel industry in the intervening years. These developments include the improving economic circumstances of the mass of the population of the United Kingdom in the years following the Second World War; the invention of the jet aircraft engine and the consequent popularity of air travel as a means of taking holidays and the emergence of tour operators as wholesalers as distinct from retail travel agents for providing people with their holiday needs (Association of British Travel Agents, 2003)."

Tags:british, tourism, market, investment