Capital Investment Appraisal
This chapter considers a number of techniques which can be used to make a decision when investing in a long-term capital project. When a business wishes to invest in a new factory, computer facilities, production line or any other major project that requires capital investment, there are a number of decisions to be made. Some are organisational and personnel decisions, but it is crucial that the financial implications of any decisions are considered. At the very least, management will want to know that the business will get its money back. In this chapter and Chapter 20 we will be looking at the different interpretations of this phrase and the techniques of capital investment appraisal most commonly used.
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