Investment decisions and corporate objectives -- The time value of money -- Capital budgeting: the traditional solutions -- Mutually exclusive investments -- Annual equivalent costs and replacement decisions -- Capital budgeting under capital rationing -- The use of the weighted average cost of capital and other rates of discount -- The capital asset pricing model -- The cost of capital and capital structure -- Distribution policy and capital budgeting -- A firm investing in a second firm -- Investing in current assets -- Foreign investment -- The buy versus lease decision -- An introduction to real options -- Capital budgeting and inflation -- Reflection on the capital budgeting decision.