Select a major capital project. Explain the project and indicate how the techniques in the chapter would help with the decision. Do you think these techniques were used. Can you think of a time when a capital project should be undertaken even if the analysis does not indicate it is financially beneficial. Please be specific in your answer.

Learning Objectives Describe the nature and importance of capital investment analysis. Obj. 1 Evaluate capital investment proposals, using the average rate of return and cash payback methods. Obi. 2 Evaluate capital investment proposals, using the net present value and internal rate of return methods. Obj. 3 Describe factors that complicate capital investment analysis. obj. 4 Describe and diagram the capital rationing process. Obj. s