Asset Investment Criteria

Abstract

The aim of this chapter is to describe the methods used in evaluating the financial merits of investments and to illustrate these by examples from the asset management area. These investments may be of a wide range of types, including asset acquisitions, modifications, upgrades, overhauls or other improvements to existing plant or facilities. This chapter is concerned with situations where we can quantify direct financial benefits associated with an investment. Situations involving non-financial and cost-benefit analysis are considered in a later chapter.