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DVDs

Capital Project Cost Control

June 22, 2009 by pmacwebmaster

Capital Project Cost Control
by Morley Selver

Project budgets can vary from $5,000 to whatever size a company can handle. The problem companies have with capital projects is how to allocate the scarce resource (money) to the maximum benefit of the company. Some factors that go into choosing which projects get done include what the competition is doing, the company’s long-range plans, return on investment (ROI), and risk. ROI is critical to making a decision, as a company is only going to undertake a project if it can make a return on its money by doing it. Think of all the projects you know about that were over budget. What affect did that have on the ROI and did it add value, or cost the company money?

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