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
designed 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.
Contents
- Shortcomings of the Traditional Capital Investment Approach
- Identifying Capital Investment Opportunities
- Clear Objectives for the Proposed Investment
- Justifying the Proposed Investment
- Considering Alternatives to the Proposed Investment
- Assessing Risk Relating to the Proposed Investment
- Total Cost of Ownership
- Timing of the Proposed Investment
- Subsequent Review of Capital Investments
- 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
For further information, contact publishing@charteredaccountants.ie or telephone on (+353) 01 637 7204
The Author
Gene Boyd is a Fellow of Chartered Accountants Ireland and has worked in a variety of senior management roles, principally in the pharmaceutical industry. He currently works in a global role with a Danish multinational pharmaceutical company. Prior to this, he managed his own consultancy firm whose client base ranged from start-up businesses to subsidiaries of multinationals, focusing principally on the development and implementation of strategy, performance management and general management topics. Formerly, Gene was General Manager of Fujisawa Ireland, a Japanese pharmaceutical manufacturing company.
LOADING...