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SCF-05 Capital Investment Decisions for Operational Improvement

Featuring Samuel C. Weaver

Length: 1 hour 28 minutes

Capital Investment Decisions for Operational Improvement

Capital investment is a critical issue for all managers, including supply chain managers, and often involves numerous areas within an organization. By using illustrative capital project examples, the core essentials of capital investment decisions are presented. At the conclusion of this module, the participant will be able to:

  • Relate the four phases of capital investment to the capital program at their organization

  • Calculate capital evaluation techniques such as payback period (PBP), net present value (NPV), and internal rate of return (IRR)

  • Identify appropriate incremental cash flows that drive a capital investment analysis

  • Participate in capital program discussions at their organization

  • Appreciate the derivation of the cost of capital or hurdle rate

Supplementary Materials

  • Module Notes & Handouts