This comprehensive two-volume set provides all the necessary concepts of capital investment evaluation, capital budgeting, and decision analysis. Mian takes the reader step-by-step through the decision making process, providing comprehensive coverage of all decision analysis tools currently available while outlining how investment decisions are made under different stages of risk. Further, he focuses on practical application, using a straightfoward approach with solved 'real-life' examples and solutions, end-of-chapter problems, and illustrations throughout the book. Volume 2: Probabilistic Models: Includes FREE limited edition version of Palisade's Decision Tools CD-ROM Includes Excel spreadsheets (detailed cash flows and calculations) of all examples in the two volumes Assess the external risk of investigating through easy-to-undrstand statistical analysis Make use of the various statistical spreedsheet applications Design and use decision trees to profile and reduce risk Determine risk probabilities by using probability distribution tables. Contents: Introduction Statistics and probability concepts Expected value and decision trees Incorporating attitudes toward risk Determing venture participation Simulation in decision analysis Appendices Index.