Dear tutors,
please help with my assignment below
Capital investment appraisal techniques have much to offer in providing support to what are often major decisions for many firms. As we move towards the end of this week’s discussion, I’d like to return to a point that has been raised several times in our work together to date: techniques must be appropriate to theorganisation in which they are used.
Many businesses around the world still fail because their capital investment decisions are based upon a calculation on the ‘back of an envelope’ and do not take any of the correct factors into account. Even larger businesses often get this wrong. This is a true sign of poor resource management.
Do you agree or disagree? What factors do you think should determine how capital investment decisions are taken by different types of organisations? You may want to consider how the differences between large and small firms might affect the importance of these factors. Please feel free to share your thoughts.
many thanks
