Investment Decisions in Small Business [electronic resource] / Prepared by the University of Kentucky under the Small Business Administration management research grant program. Project director: James W. Martin.

Format:

Book

Author/Creator:

Solomon, Martin B.

Contributor:

University of Kentucky.

Series:

Small Business Management research reports

Language:

English

Subjects (All):

Capital investments.

Genre:

Electronic books.

Physical Description:

1 online resource (161 p.)

Edition:

1st ed.

Place of Publication:

Lexington, Kentucky : University of Kentucky Press, 1963.

Language Note:

English

Summary:

How to choose the investment that will give the best return is a problem faced by all businessmen. Yet for the small businessman in particular, the literature on capital budgeting intended to help him in his investment decisions seems not to apply to his actual situation. Here in this study, theory and practice are brought together within the context of small business.Author Martin B. Solomon Jr. compares two theoretically sound formulas -- present value and the discounted rate of return -- with simpler methods of calculating the returns on investments. The superiority of the refined methods,

Contents:

Cover; Title; Copyright; FOREWORD; ACKNOWLEDGMENTS; Contents; 1. INTRODUCTION; 2. CAPITAL BUDGETING

AN OVERALL VIEW; 3. CAPITAL RATIONING FORMULAS

THEORETICALLY CORRECT METHODS; Present Value Analysis; Discounted Rate of Return; Apparent Inconsistency between the Two Methods of Analysis; 4. CAPITAL RATIONING FORMULAS

ALTERNATIVE METHODS; Formulas for Investment Evaluation; Some Analytical Comparisons; 5. SOME EMPIRICAL STUDIES OF INVESTMENT DECISIONS; Surveys of Rationing Methods; Case Studies of Investment Decision Making; Conclusion; 6. UNCERTAINTY AND ERRORS OF ESTIMATION

Cases Illustrating Degrees of Uncertainty in Investment ParametersA More General Analysis of Estimating Errors; Some Approaches to Decision Making under Uncertainty; The Payback Period: A Rationale; Conclusion; 7. SEARCH ACTIVITY IN INVESTMENT DECISIONS; Programed and Nonprogramed Aspects; Search Activity Found in the Case Studies; The March-Simon Search Hypotheses; Evaluation and Prescription; 8. THE INVESTMENT DECISION-MAKING COMPLEX

A CASE STUDY; The Ryndall Tire Company; Evaluation; 9. CONCLUSION; Truck Replacement; Implications of the Studies; APPENDIXES

A. CONTINUOUS VERSUS DISCRETE DISCOUNTINGB. THE INFINITE CHAIN; C. CASE STUDIES; D. VALUES FOR TABLES 4-3 AND 4-4; INDEX; A; B; C; D; E; F; G; H; I; L; M; N; O; P; Q; R; S; T; U; V; W

Notes:

Includes index.

Description based on print version record.

ISBN:

0-8131-6456-7

OCLC:

612573008