The objective of this manuscript is to provide the reader with a contemporary aid for the selection of investment projects of all kinds and for the financial management of businesses.

Decisions on capital expenditures, in particular, are of great importance, as they involve the commitment of large sums of money and the effects of these investments are usually felt for long periods. In order to make sound investment choices, it is necessary to understand how the costs and benefits of the proposed investment projects are calculated and assessed.

Successful investment activity means committing to investment projects that yield at least a return that covers the cost of financing these investment projects.