Capital Investment Analysis

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Dictionary Says

Definition of 'Capital Investment Analysis'

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 pinpoint the option that is most likely to be the most profitable for the business. Businesses may use techniques such as discounted cash flow analysis, risk-return analysis, risk-neutral valuation and utility theory in a capital investment analysis.
Investopedia Says

Investopedia explains 'Capital Investment Analysis'

Capital investments are risky because they involve large, up-front expenditures on assets intended for many years of service and that will take a long time to pay for themselves. If a capital investment is financed, it must earn an even greater return, to compensate for the interest the company must pay on the financed funds. Furthermore, a poor investment decision may not be reversible. For all of these reasons, it is crucial that a company perform a capital investment analysis before making any high-stakes capital investment decision.
Search results for

'Capital Investment Analysis'

  • DCF Analysis: Forecasting Free Cash Flows | Investopedia

    http://www.investopedia.com/university/dcf/dcf2.asp
    ... sales revenues grow, so a bigger investment of inventory ... in the first year, working
    capital requirements will ... Next: DCF Analysis: Calculating The Discount Rate ...

  • Triangle Capital Yields Good Results

    http://stocks.investopedia.com/stock-analysis/2011/Triangle-Capital-Yields-Good-Results-TCAP-MCGC-PNNT-BKCC-PSEC0925.aspx
    ... Get Free Stock Analysis By Email. ... Each investment averages between $5 million and
    $15 million ... income from its debt investments and capital appreciation from its ...

  • Energy Companies Start Setting 2012 Capital Budgets

    http://stocks.investopedia.com/stock-analysis/2011/Energy-Companies-Start-Setting-2012-Capital-Budgets-ECA-EGN-GEOI-NFX1102.aspx
    ... Get Free Stock Analysis By Email. ... drier natural gas plays will see a reduced capital
    program, while a growing portion of next year's capital investment will be ...

  • Banks Battle Higher Capital Standards

    http://stocks.investopedia.com/stock-analysis/2011/Banks-Battle-Higher-Capital-Standards-JPM-BAC-C-AIG1018.aspx
    ... These higher capital standards would impact banks that are classified as global,
    systemically important financial institutions ... Get Free Stock Analysis By Email. ...

  • Ecopetrol Plans Large Upstream Investment

    http://stocks.investopedia.com/stock-analysis/2011/Ecopetrol-Plans-Large-Upstream-Investment-EC-NXY-BP-OXY-TLM1201.aspx
    ... Get Free Stock Analysis By Email. ... Ninety percent of the capital will be concentrated
    on ... Current Fields Ecopetrol also plans considerable investment in 2012 in ...

  • Denbury Resources Loves Enhanced Oil Recovery

    http://stocks.investopedia.com/stock-analysis/2011/Denbury-Resources-Loves-Enhanced-Oil-Recovery-DNR-PXP-OXY-REXX1123.aspx
    ... Get Free Stock Analysis By Email. EOR Production Denbury Resources reported average ...
    These five phases will require a total capital investment of $231 million in ...

  • Royal Dutch Shell Strategy Update

    http://stocks.investopedia.com/stock-analysis/2011/Royal-Dutch-Shell-Strategy-Update-RDS.A-RDS.B0918.aspx
    ... Get Free Stock Analysis By Email. ... Capital Investment Upstream Royal Dutch Shell is
    in the midst of a four year capital spending program of approximately $125 ...

  • Investment Grade Bonds Attractive

    http://stocks.investopedia.com/stock-analysis/2011/Investment-Grade-Bonds-Attractive-LQD-CSJ-VCSH-VCIT-VCLT1107.aspx
    ... where they are forced to increase capital and their ... bonds one of the safest investment
    vehicles available. ... Get Free Stock Analysis By Email. Investopedia Markets ...

  • The Investment Case For Old Dominion

    http://stocks.investopedia.com/stock-analysis/2011/The-Investment-Case-For-Old-Dominion-ODFL-ABFS-FDX-UPS1207.aspx
    ... has been a byproduct of lower capital turnover and ... sell-side and buy-side investment
    companies in ... pertaining to investments, security analysis, and healthcare. ...

  • The Working Capital Position

    http://www.investopedia.com/articles/basics/06/workingcapital.asp
    ... comprehensive look at how best to evaluate the investment quality of a company's
    working capital position ... Don’t be Mislead by Faulty Analysis To start this ...

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