More handpicked essays just for you.
Challenges in the business environment
Eight key factors to ensuring project success
Challenges in the business environment
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Challenges in the business environment
An Essay By
- 15821048
The business scope of the modern day economic agents is no longer that of simply selling their products and cashing in the revenues, but has become more complex. More specifically, while the ultimate objective remains that of profit registration, economic agents have changed their approach to attaining the objective. They now focus on satisfying the customers, attaining the approval of the society and creating a favorable working environment for the employees. In the context of increasing challenges, the economic agents are also presented with incremental opportunities, which aim to increase their revenues, to improve the production volumes, to increase operational efficiency through technological enhancements or to expand into new markets and serve new customers. All these efforts are completed through projects of capital investments.
Capital investment projects are extremely complex endeavors, understood traditionally as financial resources invested in an organization for the general purpose of cashing in the profits generated by the respective investment. Two particular features which need to be mentioned relative to capital investments is that these can occur within the entity making the investment, or within a different entity, and also that the capitals are generically destined to cover the purchase of fixes assets (equipments, land and so on), rather than use them to cover everyday expenses (Ward).
The success of capital investment projects varies and it is sensitive to numerous factors. A particular belief is that the failure of capital investment projects is pegged to the fact that the adjacent decisions are made in an improper manner, that the resources are poorly allocated and that the correc...
... middle of paper ...
...tment risks, Federal Trade Commission, http://www.ftc.gov/bcp/edu/pubs/consumer/invest/inv03.shtm last accessed on July 7, 2011
Kierulff Herbert (2008) MIRR: A Better Measure School of Business and Economics, Seattle Pacific University, 3307 Third Avenue West,Seattle, WA 98119, U.S.A.
Kobzeff, J., Profitability index – measure investment return, Pro Apod, http://www.proapod.com/Articles/real-estate-investing-for-beginners-12.htm last accessed on July 7, 2011
Osbornen Michael J. (2010) A Resolution to the NPV–IRR Debate? Middlesex University Business School, The Burroughs, Hendon, London NW4 4BT, United Kingdom
Ward, S., Capital investment, About, http://sbinfocanada.about.com/od/financing/g/capinvestment.htm last accessed on July 7, 2011
2011, Net present value¸ Investopedia, http://www.investopedia.com/terms/n/npv.asp last accessed on July 7, 2011