Financial Manager how-to
How to Evaluate a Capital Investment Request
Good capital decisions build value.
Quick answer
Good capital decisions build value. In short: get; estimate; calculate, then complete the remaining steps below.
Step by step
Get the full cost.
Estimate benefits.
Calculate payback and NPV.
Test assumptions.
Consider risks.
Recommend.
Safety reminders for financial managers
- Maintain internal controls
- Prevent fraud
- Protect financial data
- Follow reporting regulations
Key terms
Controller · Treasurer · CFO · FP&A · Forecast · Month-end close: see the full financial manager glossary.