DELTAS VERSUS DOLLARS
When the leaderships of industrial companies put together their capital expenditure (capex) budgets, they may have capex projects with an average discounted payback period of three to four years. If undiscounted, perhaps six months sooner. This is an impressive return, far beyond their investors’ expectations. If a capex project’s expected life is 15 years, investors are OK (presumably) with a discounted payback in year 15. By leadership’s estimates, however, the investors can expect a payback in just three or four years.
Over several years, this type of performance provides the investors with an enviable total shareholder ...
Get Redesigning CapEx Strategy: A Groundbreaking Systems Approach to Sustainably Maximize Company Cash Flow now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
