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The process of analyzing and selecting various proposals for capital expenditures.
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Benefits that can be quantified and assigned a monetary value; they include lower operational costs and increased cash flows.
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Benefits that are not easily quantified; they include more efficient customer service or enhanced decision making.
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| Accounting Rate of Return on Investment (ROI) |
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Calculation of the rate of return on an investment by adjusting cash inflows produced by the investment for depreciation. Approximates the accoutning income earned by the investment.
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The amount of money an investment is worth, taking into account its cost, earnings, and the time value of money.
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A quick method for deciding among alternative systems based on a system of ratings for selected objectives.
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All organizational activities working toward the adoption, management and routinization of an innovation.
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The interaction of people and machines in the work environment, including the design of jobs, health issues, and the end-user interface of information systems.
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