What can I say back to reply to my peer to add to the conversation Capital investment analysis involves analyzing potential expenditures on land, buildings, and equipment deciding if the organization should undertake those investments (Reiter., et al 2018). There are four steps that go into capital investment analysis such as estimate the expected cash flows, assess the riskiness of those flows, estimate the appropriate opportunity cost of capital, and determine the projects profitability and breakeven characteristics (Reiter., et al 2018). Capital investments decisions are important because it can either make or break your business and you have to give thought on what you are buying and where the location is going to be. You wouldn't want to buy land in the middle of nowhere. You would more than likely want to buy and build on land where the community is growing around you to receive business which will make your investments profitable