Capital Investment Decisions: Moving Beyond Traditional Financial Models

Companies can supplement their traditional capital budgeting techniques with a strategic analysis that helps align both short- and long-term goals. In fact, a strategic analysis of this kind may be the only technique applicable for decisions in which cash inflows are difficult to estimate. Because a strictly financial analysis may lead to different decisions than a strategic analysis, managers need to develop appropriate review criteria that can take into account both strategic and financial analyses, when appropriate. (C) 2011 Wiley Periodicals, Inc.