This book is concerned with the evaluation and financing of major long-term capital expenditure projects. This is regarded an important area, as it represents the way in which firms can enhance the wealth of their shareholders. Originated from undergraduate lectures on corporate financial management, this book is aimed at both students and professionals concerned with such areas as industrial and commercial decision making, economy and accountancy. Exam-style questions are included, aiming to cover the major elements of each chapter. Rather than a cook-book of capital investment decision making, the book is intended as an attempt at an exposition of a normative theory of financial decision making. The author's aim is not to put forward theoretical solutions to practical problems, but to promote reflection on how decisions are made and how they may be improved.