Description
Review the information from your text and at least one scholarly source on capital investment plans.In a one- to two-page paper, which will be included in your Final Project, explain why your manager or the board would or would not accept a proposal for the capital investment. List at least three arguments that could be used for or against the proposal. In other words, what will the intended audience be looking for when reviewing the proposal?
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Explanation & Answer
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Running head: CAPITAL INVESTMENT
Capital Investment Plans
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CAPITAL INVESTMENT
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A manager or board cannot approve a capital investment proposal that does not meet
certain objectives. In any capital investment, there is an aspect of security, growth, and income
(Damodaran, 2007). These criteria project an investment plan as viable or not viable. To begin
with, an investment plan should seek to preserve capital. The very essence of a business is to
optimally utilize its resources in revenue generation (Gingerich, 2014). This means that when an
asset is short lived; a business will find it not ideal in its operations. Every business has an
expectation that it wil...