Capital investment appraisal is a process used by companies to evaluate and compare potential large-scale investment opportunities to determine their viability and profitability.
Comparative Credit Analysis is a method of company evaluation in which a firm is compared with other similar firms that have a desired credit rating to decide on appropriate accounting ratio targets for the company being analyzed.
The GE/McKinsey Matrix is a strategic tool used for analyzing the strength of business units within a large diversified corporation. It evaluates units based on industry attractiveness and competitive strength, aiding investment and divestment decisions.
In the USA, a registration statement is a lengthy document that must be submitted to the Securities and Exchange Commission (SEC). It contains all relevant information about a new securities issue, enabling potential investors to make informed decisions.
Residual income is the net income generated by a subsidiary or division after accounting for the costs associated with the capital it uses. This metric is particularly useful in determining the profitability and efficiency of investment projects within larger organizations.
An evaluation of an investment decision based on broader criteria than pure financial metrics, considering long-term strategic benefits and intangible factors, particularly relevant for advanced manufacturing technology decisions.
