AVOIDING EXPENSIVE MISTAKES IN CAPITAL-INVESTMENT

Academics, in the past, have provided management with a wide range of suggestions on how to analyse and appraise their investment in capital goods. Many sophisticated appraisal techniques have been accepted for use by project sponsors in the majority of organizations, However, as recent empirical research has revealed, the capital investment decision making processes are far more complex and wide-ranging than the majority of publications has advocated. In this article we want to focus on the factors which influence the decision making processes and the indispensable links these processes have with the corporate context and ultimately with corporate strategy.