Evaluating capital expenditures and long-term investments is a critical process for businesses. Better-managed organisations view all long-term programmes (capital and non-capital) in a disciplined environment.
This resource will explore some of the unique issues concerning budgeting and evaluating, financing, and managing a variety of activities.
In addition to typical capital projects, expenditures such as R&D, IT, advertising, training, and even planned builds in working capital can be viewed as long-term programmes. These all consume cash in anticipation of future pay out.
CGMA professionals can use this tool to help
There are two examples of investment analyses using discounted cash flow evaluation techniques, complete with downloadable Excel spreadsheets. The examples calculate net present value and the internal rate of return (IRR) for each project, showing how management can use the information to evaluate capital expenditures and allocate capital in their annual planning process.
Is there a way to download this to ipad? I tried several times but it didn''t work.
Emily, I was able to unzip the file using 7-zip. As the spreadsheet is an XLSX file type, you may have trouble opening it if you are not using the latest version of Excel. Try using Open Office Calc or Libre Office Calc these have worked for me.
The file and written procedure are well contructed and clear. I work with small growing businesses and this will provide a good process for discussing capital and R&D spending.
Emily, I open and downloaded the file without any issues, you can send me an email and I can send you the documents.
Modesto Matheu, CPA, CGMA, CIA, CBM
The zip file is unreadable with I open it.