This article focuses on various analytic techniques based on multi year period for the utilization of a new asset, including net present value, internal rate of return, and payback period techniques. It determines the issue of risk, selection of an appropriate rate of return and evaluation of risk by companies in assessing upfront investment?
Discusses the influence on senior executives’ decision about a capital investment get affected by some non-quantitative consideration. At the end, it recommends the possible ways that organizational activities have a direct relation with capital investment?