The Capital Investment Process

Abstract

The corporate manager could easily be forgiven for assuming that capital budgeting is primarily concerned with the selection of an appropriate evaluation technique. Most texts on the subject are devoted almost entirely to such topics as comparisons of evaluation techniques, determining hurdle rates of return and incorporating risk into the equations. Only a few writers have suggested that this emphasis is misplaced. This article places evaluation within the whole capital investment process from the conception of an investment opportunity to its completion. It also considers the total investment programme and how it relates to organisational planning and control systems.

Citation

Dobbins, R. and Pike, R. (1980), "The Capital Investment Process", Managerial Finance, Vol. 6 No. 2, pp. 13-24. https://doi.org/10.1108/eb013463