Capital investment projects Investments can be divided into three categories: Strategic investments Development investments Replacement investments Strategic investments aim to significantly expand production capacity (e.g. by installing a new paper machine) or to start manufacturing of a new product. In both cases, the purpose is either to strengthen the existing strategic direction of the company
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Capital investment projects
After reading this article you will..
- Be able to describe the three planning phases before an investment decision
- Understand the role of different bodies in the organisation in decision-making
Content
Business and investment planning
- Investment project fundamentals
- Business and investment planning in the forest industry
- Conceptual phase
- Pre-feasibility phase
- Feasibility phase
- Organisational learning in investment projects
Authors & references
Author:
Magnus Diesen
References:
- Diesen, M. 2007. Economics of the Pulp and Paper Industry, Papermaking Science and Technology, 2nd. ed., Paperi ja Puu Oy, Jyväskylä.
Videos
Exercises
This page has been updated 15.10.2020
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