University of Phoenix Capital Project Discussion

Question Description

I need an explanation for this Accounting question to help me study.

To support growth strategies and combat competition with rivals, businesses seek external capital to further develop products and services in hopes to create new sales opportunities. Since capital investment often involves a huge money investment, longer time engagement and risks of uncertainties, any decision shall not be taken lightly and shall be carefully evaluated before putting money to start a long-term project. The goal is to ultimately make the right accept/reject decision. Respond to the following:

1. Discuss criteria and techniques used to evaluate a capital project. Which criteria and techniques do you consider the most useful?

2. As a financial manager, would you use the same criteria or evaluation techniques for any capital project?

3. Why or why not?