Description
A well-functioning and complete capital investment process with an established documented methodology can be a significant contributor to the success of a business. In many organisations, a clear process for generating investment proposals does not exist or, even when the initial ideas are generated, it is often not clear how they will be developed and appraised. Written by a Chartered Accountant with extensive experience in business and industry, this guide presents a comprehensive and applied approach to assessing capital investment proposals, and the methods that can be used to help businesses develop and appraise proposals and achieve the optimal outcome. It is written for managers and senior management involved in the approval of capital investment proposals as well as financial controllers looking for a system to help ensure better investment decisions. OUTLINE OF THE BOOK The contents include by chapter: Introduction 1. Shortcomings of the Traditional Capital Investment Approach 2. Identifying Capital Investment Opportunities 3. Clear Objectives for the Proposed Investment 4. Justifying the Proposed Investment 5. Considering Alternatives to the Proposed Investment 6. Assessing Risk Relating to the Proposed Investment 7. Total Cost of Ownership 8. Timing of the Proposed Investment 9. Subsequent Review of Capital Investments 10. Conclusion Appendix A: Templates, Forms and Checklists Supporting the Proposed Methodology Appendix B: Traditional Financial Assessment Methods: Description and Analysis Appendix C: Understanding Depreciation and Its Impact on the Organisation
