Question

Consider where you currently work, where you have previously worked, or a well-known company where you...

Consider where you currently work, where you have previously worked, or a well-known company where you would like to work. How might this company make capital investment decisions? What capital investment decisions do you see evidence of at this company?Consider where you currently work, where you have previously worked, or a well-known company where you would like to work. How might this company make capital investment decisions? What capital investment decisions do you see evidence of at this company?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Capital investment decisions are those decisions made by a management team regarding the utilization of fund spent to procure capital assets. Capital investment decisions can be also called as capital budgeting. It is an important Long term Financial decisions of every firm.

Capital investment decisions occur frequently.This decision is not as simple as it seem.In order to reduce the risk involved in capital investment the company has to identify best opportunities.It is a contribution of funds toward the acquisition of long term assets for the growth. Long-term assets include the purchase of new equipment, the replacement of old machinery etc. The company must first determine its capital needs which require immediate attention. Sometimes company may have enough resource for the capital investments of many projects and sometimes they have only enough resources to invest in a limited number of opportunities.

In this case, the company has to evaluate both the time and money needed to acquire asset. Next is to find alternatives for investment. As there are so many alternative available, a company will need to establish baseline criteria.This step will help in differentiating alternatives.Then evaluate alternatives using screening and preference decisions.If more alternatives exceeds the minimum expectations, a preference decision is considered. A preference decision compares the potential projects that meet screening decision criteria.Then it will rank the alternatives in order of importance, feasibility, etc. While making the final decision, all financial and non-financial factors are considered.

Capital Investment Decision includes two important decisions. Financial decision and Investment decision. By taking a project, the business has agreed to make a financial commitment and that involves own set of risk. Project delay, cost overruns etc can delay & increase the cost of the project.

In addition to a financial decision, a company is also making an investment in its future. So the capital investment decision must consider financial & investment.

Add a comment
Know the answer?
Add Answer to:
Consider where you currently work, where you have previously worked, or a well-known company where you...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Consider where you currently work, where you have previously worked, or a well-known company where you...

    Consider where you currently work, where you have previously worked, or a well-known company where you would like to work. How would this company use CVP analysis? What types of decisions could they make using the tools you have explored during this topic? Explain. Do you consider CVP analysis to be critical for a company’s success? Explain.

  • Consider where you currently work, where you have previously worked, or a well-known company where you...

    Consider where you currently work, where you have previously worked, or a well-known company where you would like to work. Describe this company and identify whether it would prepare a schedule of cost of goods sold, cost of goods manufactured, both of these, or neither of these. Justify your selection using the Topic Materials.

  • Think of an organization you have worked worked for, currently work for or would like to...

    Think of an organization you have worked worked for, currently work for or would like to for in the future. Based on your experiences and research you conduct, does the organization's strategy set it apart from rivals? Does the strategy seem to be keyed to a cost-based advantage, differentiating features, serving the unique needs of a niche, or some combination of these? What is there about the organization's strategy that can lead to sustainable competitive advantage? Make sure you are...

  • Consider an organization you currently or previously worked at. Was information effectively managed in this organization?...

    Consider an organization you currently or previously worked at. Was information effectively managed in this organization? If so, what approaches were used to implement effective information/knowledge management? If not, what steps could be taken to improve knowledge/information management?

  • Thinking of a company you worked for in the past, currently work for, or hope to...

    Thinking of a company you worked for in the past, currently work for, or hope to work for in the future discuss if you think decentralization would work at that organization, why or why not? Be sure to provide specific examples. can you relate it to jobs from sale associates as past, now as a assistant clerk in the store. Thank you

  • think about the clinical environment where you work or one in which you previously worked. Identify opportunities for wa...

    think about the clinical environment where you work or one in which you previously worked. Identify opportunities for waste reduction. Consider the following: Setting: administrative, operational, clinical Efficiency Value to patient Suggest process changes to improve the situation. Write a 175-word communication to frontline staff and nurse leaders explaining your findings as speaker notes across the slides. Develop a 7- to 10-slide presentation for your department.

  • You have recently hired a new assistant, Susan Thompson, who previously worked in a financial accounting...

    You have recently hired a new assistant, Susan Thompson, who previously worked in a financial accounting office preparing journal entries, which provide you with a recording of the day-to-day activities of the company and financial statements (income statement, statement of owners' equity balance sheet, and cash flow statement). Although your new assistant has experience with and fully understands financial accounting, she has no experience with managerial accounting. Part 1 In a memo to your new assistant, Susan Thompson, complete the...

  • You have recently hired a new assistant, Susan Thompson, who previously worked in a financial accounting...

    You have recently hired a new assistant, Susan Thompson, who previously worked in a financial accounting office preparing journal entries, which provide you with a recording of the day-to-day activities of the company and financial statements (income statement, statement of owners' equity balance sheet, and cash flow statement). Although your new assistant has experience with and fully understands financial accounting, she has no experience with managerial accounting. Part 1 In a memo to your new assistant, Susan Thompson, complete the...

  • Use the web to research a company that currently (or previously) uses flexible work schedules. Do...

    Use the web to research a company that currently (or previously) uses flexible work schedules. Do not use a company already identified by another student. Explain the company’s flexible work policies, their rationale for using said policies, and the success (or failure) of doing so. How do these policies shape your impression of working for this company?

  • Consider your current company, or a company that you have formerly worked for, and describe and...

    Consider your current company, or a company that you have formerly worked for, and describe and critique the budgeting processes that are used for that organization. If you do not have relevant work experience, use the GCU Library to locate an article on budgeting or forecasting and compare the process recommended by the article to that of the textbook. Your initial post should be approximately 250 words.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT