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The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called capital investment analysis. Care must be taken involving capital investment decisions since normally a long-term commitment of funds is involved and operations could be affected for many years. Methods that ignore present value in capital investment analysis include the average rate of return method. The cash payback method of capital investment analysis is one of the methods referred to as a present value method. The methods of evaluating capital investment proposals can be grouped into two general categories that can be referred to as (l) average rate of return and (2) cash payback methods