Yield and Risk Analyses of Investments

Successful investments increase company value, while failures diminish it. Investments are characterized by high capital commitment and long durations. Once implemented, they are usually only reversible at high costs. Accordingly, the importance of an integrated analysis of investment decisions from the perspectives of yield and risk is significant. This book offers a comprehensive and practice-oriented insight into modern methods of investment calculation and their connections to value-oriented corporate management. The foundation of the valuation is the net present value formula, the central components of which—the expected cash surpluses and the risk-adjusted discount rate—are gradually brought to life. First, the discount rate is determined using capital market data.