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Capital Allocation

  • Rist Michael
  • Pizzica Albert J.
Chapter

Abstract

Capital allocation is the process used to analyze projects and decide which ones should or should not be included in the company’s capital budget (plan for spending money on growth and sustaining current operations). This chapter gives you the tools to make these decisions based upon potential growth and profitability. After the analysis has been performed, the capital budget itself outlines the planned expenditures on capital assets. The capital allocation process is important as it outlines the long-term investment strategy of the company.

Keywords

Cash Flow Payback Period Capital Budget Capital Allocation Cash Inflow 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© PENHAGENCO LLC 2015

Authors and Affiliations

  • Rist Michael
    • 1
  • Pizzica Albert J.
    • 1
  1. 1.NJUS

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