Capital Investment Factors

Definition of 'Capital Investment Factors'


Factors affecting the decisions surrounding capital investment projects. Capital investment factors are elements of a project decision, such as cost of capital or duration of investment, which must be weighed in order to determine whether an investment should be made, and if so, in what manner the investment is best made in order to maximize utility for the investor.

Investopedia explains 'Capital Investment Factors'


Capital investment factors can relate to almost any aspect of an investment decision, such as regulatory environment, risks associated to the investment, macro-economic outlook, competitive landscape, time to complete a project, concerns of shareholders, governance, probability of success/failure and opportunity costs, to name a few. All factors should be examined before coming to a final decision on capital investment projects.



comments powered by Disqus
Hot Definitions
  1. Direct Bidder

    An entity that purchases Treasury securities at auction for a house account rather than on behalf of another party.
  2. Mortgage Modification

    A permanent change in a homeowner's home loan terms that makes the monthly loan payments affordable.
  3. Leveraged Benefits

    The use – by a business owner or professional practitioner – of their company’s receivables or current income to secure a loan whose proceeds then indirectly fund a retirement plan.
  4. Direct Consolidation Loan

    A loan that combines two or more federal education loans into a single loan. A Direct Consolidation Loan allows the borrower to make a single monthly payment. The loan is facilitated by the U.S. Department of Education and does not require borrowers to pay an application fee.
  5. Through Fund

    A type of target-date retirement fund whose asset allocation includes higher risk and potentially higher return investments "through" the fund's target date and beyond.
  6. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold or disposed of first.
Trading Center