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Financial Intelligence, Revised Edition
book

Financial Intelligence, Revised Edition

by Karen Berman, Joe Knight, John Case
January 2013
Beginner content levelBeginner
272 pages
6h 32m
English
Harvard Business Review Press
Audiobook available
Content preview from Financial Intelligence, Revised Edition

Part Six

Toolbox

A STEP-BY-STEP GUIDE TO ANALYZING CAPITAL EXPENDITURES

You’ve been talking with your boss about buying a new piece of equipment for the plant, or maybe mounting a new marketing campaign. He ends the meeting abruptly. “Sounds good,” he says. “Write me up a proposal with the ROI and have it on my desk by Monday.”

Don’t panic: here’s a step-by-step guide to preparing your proposal.

1. Remember that ROI means return on investment—just another way of saying, “Prepare an analysis of this capital expenditure.” The boss wants to know whether the investment is worth it, and he wants calculations to back it up.

2. Collect all the data you can about the cost of the investment. In the case of a new machine, total costs would include the ...

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Publisher Resources

ISBN: 9781422144121