CAPITAL PROJECTS SPECIALISTS, EXPERTS WITNESSES and FORENSIC CONSULTANTS. (CAPITAL PROJECTS)
Popular methods for determining the relative and absolute value of business projects/ventures include:
Net Present Value (NPV), Internal Rate of Return (IRR), Discounted Cash Flow (DCF), and Payback Period
Cost of capital (the optimal minimum cost mix of cost-of-debt and cost-of-equity to a business) otherwise known as the Business Rate of Return (the rate of return the market expects from businesses of similar risk) stands as a market determined interest rate applied to funds lent to businesses with similar risk levels. This rate fluctuates at any given point in time and constituent market sentiment.
If a project or venture does not exceed this market determined required rate of return then it is not worth doing. The projects/ventures which do exceed this benchmark return may still not be worthwhile because their associated risk causes the business to exceed its total Financial Risk Budget.
Expert in Industrial Engineering, Operations/Logistics Management, Automation Systems & Equipment, Material Handling Equipment, and MRP, WMS, DCS, MHS, and TMS Software Integration.
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