Figure 13-1 Overview of Capital Financing and Allocation Activities in a Typical Organization

TABLE 13-1 Rates of Return From 1926–2002 on Five Types of Securities

Figure 13-2 Markowitz Efficient Portfolio and the Security Market Line

Figure 13-3 Risk and Return in the Capital Asset Pricing Model (CAPM)

Figure 13-4 Schedule of Prospective Returns and Investment Amounts

TABLE 13-2 Degrees of Dependence Between Pairs of Projects

Figure 13-5 Continuum of Degrees of Dependence between Pairs of Projects

Figure 13-6 Separability of Buy versus Lease versus Status Quo Decisions, and the Choices that Should Result

Figure 13-7 Spreadsheet Solution, Example 13-5

TABLE 13-3 Project Interrelationships and PW Values