Examines the important techniques for analyzing the profitability of capital investments. This book discusses time value mechanics and financial concepts, including discounted cash flow, return on investment, incremental analysis, cash flow tables, income taxes, depreciation, cost of capital and risk analysis.

Part 1 Concepts and Inputs: Projectability Concepts; Evaluation Types and Data Needs; Depreciation and Income Taxes; Comparing Individual Project and Corporate Returns. Part 2 Discounted Cash Flow Calculations: Discounted Cash Flow Techniques; Comparing Alternatives; Handling Inflation; Replacement Cost and Lease Analysis; Risk Analysis by Project Sensitivities; Other Risk Analysis Techniques; Shortcut Techniques for Economic Evaluations. Part 3 Reporting Results: Types of Economic Reports; Postinstallation Appraisals; Case Problem. Appendices: Glossary of Selected Financial Terms; Accounting Financial Statements; Cost of Capital; AACE Classification System for Economic Appraisals; Nondiscounted Techniques; Inflation Theory; Deviation of Shortcut Correlation Equations; Instructions for Preparing an Appraisal Report; Solution to the Case Problem. Discount Factor Tables.