TY - JOUR
AU - Lipson, William
AB - The evaluation process for capital expenditures has becomeincreasingly challenging in an increasingly international marketplaceand amidst rapid technological change. Key recommendations for improvingthe evaluation process are outlined. It is argued that, from thecompanys strategic plan, one should develop a common set of planningassumptions, on the basis of which projects are first selected. A formalmanual should be prepared, setting standards for the evaluation process.Financial approaches can help quantify the many risks associated with aproject. Protection against such risks can be sought throughinternational diversification, purchase of insurance, or even hedging infinancial markets. The impact of international competition in localmarkets is a key risk which should be considered. Possible strategies toavoid rapid obsolescence are a quick review process, continuousupgrades, refusal to be stampeded by equipment manufacturers, and theoption of buying new technology. Wherever possible, projects should beimplemented using a phased approach.
TI - To Spend or Not to Spend Improving the Evaluation of Capital Expenditures
JF - Industrial Management & Data Systems
DO - 10.1108/02635578910132873
DA - 1989-07-01
UR - https://www.deepdyve.com/lp/emerald-publishing/to-spend-or-not-to-spend-improving-the-evaluation-of-capital-cNv0BKRuUJ
SP - 9
EP - 14
VL - 89
IS - 7
DP - DeepDyve
ER -