The goal of the firm -- Capital budgeting: an overview -- The economic evalution of investment proposals -- Net present value internal rate of return -- Using cash flows to evaluate investments -- Impact of corporate income taxes on projects' cash flows -- Capital budgeting and inflation -- Traditional measures of investment worth -- Foundations of risk analysis -- Measuring risk -- Applications of risk analysis -- Decreasign risk by diversification: the portfolio approach -- The capital asset pricing model -- Financial leverage -- Capital structure and valuation -- Bankruptcy risk and the choice of financial structure -- Defining the cost of capital -- Measurint the cost of capital -- Dividend policy -- Capital investment decisions under capital rationing -- The lease of buy decision -- Option: return profiles and valuation -- Suggestions for further reading

1. Capital investment