The capital investment appraisal process part 1
Thus, the basic aim of investment appraisal is to check whether the initial outlay would result in enough future cash inflows, to be considered worthwhile. In order to achieve this objective, companies require certain inputs. These inputs are put through the process of investment appraisalThe Investment Process for Capital Investments The case of industrial energyefficiency investments. and nonenergy benefits. Josefine Rasmussen. 2016. Department of Management and Engineering. Linkpings universitet. SE 581 83 Linkping, Sweden the capital investment appraisal process part 1
Capital budgeting, and investment appraisal, is the planning process used to determine whether an organization's long term investments such as new machinery, replacement of machinery, new plants, new products, and research development projects are worth the funding of cash through the firm's capitalization structure (debt, equity or retained earnings).