Preface
The past 40 years have seen a substantial change in how corporate financial managers (CFOs, treasurers, comptrollers) make investment decisions. Where the rule used to be to simply earn enough money on an investment, with enough being defined by various rules of thumb, one’s intuition, or as simply any amount greater than the investment itself. Today, corporate financial managers use substantially more sophisticated frameworks to determine whether an investment is worthwhile or to determine at what price an investment is worthwhile. These frameworks entail the integration of basic finance principles with accounting, asset pricing models, and probabilistic and statistical techniques. One of the most powerful enabling factors for this trend ...
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