Capital Project Management and Appraisal Quiz

Introduction to Capital Projects and Investment

• Capital projects involve initial expenditure followed by a stream of revenue less running costs.
• Companies use the money generated from savings and investments to fund capital projects.
• Capital projects can include purchasing machinery, launching new products, or acquiring properties.
• These projects can also involve non-physical assets, such as new products for a life insurer.
• Individuals and institutions engage in saving to use the money in the future for purposes like retirement, education, holidays, or home deposits.
• Businesses engage in investing to grow their operations, such as constructing buildings, buying equipment, or adding stock.
• Investing uses the money that comes from savings and investments.
• Capital projects are a way for companies to utilize the funds generated from saving and investing to improve their business.
• The success of capital projects relies on the ability to generate revenue that exceeds running costs.
• Capital project management involves the planning, execution, and control of these projects to ensure their successful completion.
• Capital project appraisal is the process of evaluating the feasibility and financial viability of a capital project before its implementation.
• Capital project appraisal helps companies make informed decisions about which projects to invest in based on their potential returns.