Selected Additional References and Cases 295Selected Additional References and Cases
For an in-depth treatment of capital budgeting techniques, see
Bierman, Harold, Jr., and Seymour Smidt,The Capital Bud-
geting Decision(New York: Macmillan, 1993).
Levy, Haim, and Marshall Sarnat,Capital Investment and Fi-
nancial Decisions(Englewood Cliffs, NJ: Prentice-Hall,
1994).
Seitz, Neil E., and Mitch Ellison,Capital Budgeting and
Long-Term Financing Decisions(Fort Worth, TX: The
Dryden Press, 1995).
The following articles present interesting comparisons of four dif-
ferent approaches to finding NPV:
Brick, Ivan E., and Daniel G. Weaver, “A Comparison of
Capital Budgeting Techniques in Identifying Profitable
Investments,” Financial Management, Winter 1984,
29–39.
Greenfield, Robert L., Maury R. Randall, and John C.
Woods, “Financial Leverage and Use of the Net Present
Value Investment Criterion,”Financial Management,Au-
tumn 1983, 40–44.
These articles are related directly to the topics in this chapter:
Bacon, Peter W., “The Evaluation of Mutually Exclusive In-
vestments,”Financial Management,Summer 1977, 55–58.
Chaney, Paul K., “Moral Hazard and Capital Budgeting,”
Journal of Financial Research,Summer 1989, 113–128.
Miller, Edward M., “Safety Margins and Capital Budgeting
Criteria,”Managerial Finance,Number 2/3, 1988, 1–8.
Woods, John C., and Maury R. Randall, “The Net Present
Value of Future Investment Opportunities: Its Impact on
Shareholder Wealth and Implications for Capital Bud-
geting Theory,”Financial Management,Summer 1989,
85–92.
For some articles that discuss the capital budgeting methods actu-
ally used in practice, see
Kim, Suk H., Trevor Crick, and Seung H. Kim, “Do Execu-
tives Practice What Academics Preach?”Management Ac-
counting, November 1986, 49–52.
Mukherjee, Tarun K., “Capital Budgeting Surveys: The Past
and the Future,”Review of Business and Economic Research,
Spring 1987, 37–56.
———, “The Capital Budgeting Process of Large U.S.
Firms: An Analysis of Capital Budgeting Manuals,”Man-
agerial Finance, Number 2/3, 1988, 28–35.
Ross, Marc, “Capital Budgeting Practices of Twelve Large
Manufacturers,” Financial Management, Winter 1986,
15–22.
Runyan, L. R., “Capital Expenditure Decision Making in
Small Firms,” Journal of Business Research, September
1983, 389–397.
Weaver, Samuel C., Donald Peters, Roger Cason, and Joe
Daleiden, “Capital Budgeting,”Financial Management,
Spring 1989, 10–17.
Additional capital budgeting references are provided in Chapters 8
and 17.
For a case that focuses on capital budgeting decision methods, see
Case 11, “Chicago Valve Company,” in theCases in Financial
Management series.