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Alternative Methods of Evaluating Capital Investments in Logistics

Alternative Methods of Evaluating Capital Investments in Logistics Evaluating capital investments for additions or modifications towarehouses, for replacement of equipment or for entirely new facilitiesis a complex activity which involves numerous financial, competitive andother considerations. The financial aspect of capital investments isaddressed and it is shown how ten different investment criteria can bebrought to bear on the capital investment issue. The ten investmentcriteria consist of five primary criteria and five secondary criteria.The primary criteria are payback period in years, nondiscounted rate ofreturn on investment, internal rate of return, Baldwin rate of return,and benefit cost ratio. All ten criteria are described and suggestionsare made when each criterion is appropriate. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Physical Distribution & Logistics Management Emerald Publishing

Alternative Methods of Evaluating Capital Investments in Logistics

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0960-0035
DOI
10.1108/09600039110141537
Publisher site
See Article on Publisher Site

Abstract

Evaluating capital investments for additions or modifications towarehouses, for replacement of equipment or for entirely new facilitiesis a complex activity which involves numerous financial, competitive andother considerations. The financial aspect of capital investments isaddressed and it is shown how ten different investment criteria can bebrought to bear on the capital investment issue. The ten investmentcriteria consist of five primary criteria and five secondary criteria.The primary criteria are payback period in years, nondiscounted rate ofreturn on investment, internal rate of return, Baldwin rate of return,and benefit cost ratio. All ten criteria are described and suggestionsare made when each criterion is appropriate.

Journal

International Journal of Physical Distribution & Logistics ManagementEmerald Publishing

Published: Feb 1, 1991

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