An investment proposal, when approved by management, should not be regarded as an irreversible authorisation to proceed with the project itself but rather as an authorisation to proceed on the basis of the cash flows estimated in the proposal. A reliable system is needed to monitor and control the subsequent performance of projects and it must concentrate in particular on the following factors:
1. Control of timing and expenditure up to the start of operations (pre-commencement control).
2. Post-audit project reviews.
3. Timing of replacement.
4. Timing of abandonment.
KeywordsCash Flow Capital Expenditure Retirement Period Annual Equivalent Economic Worth
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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© Richard J. Briston and Jack Liversidge 1979