Analysis of an existing investment project

The reality of corporate world is very complex, company planning launch into the new business atmosphere has to take in consider several main topics: Financial distress costs, Taxes, Nature of assets, Nature of the business and competitive position, Risk management, Ownership control.

Capital investment analysis is a budgeting procedure that companies and government agencies use to assess the potential profitability of a long-term investment. Capital investment analysis assesses long-term investments, which might include fixed assets like equipment, machinery, or real estate. The goal of this process is to identify the option that can yield the highest return on invested capital. Criteria of evaluation analysis of existing investment project: Net present value (NPV), Internal rate of return (IRR), Payback period, Profitability index (PI) and Benefit-Cost Ratio (BCR).