What is the capital investment analysis?

DEFINITION of 'Capital Investment Analysis' A budgeting procedure that companies and government agencies use to assess the potential profitability of a long-term investment. Capital investment analysis assesses long-term investments, which might include fixed assets like equipment, machinery or real estate. read more

Capital investment analysis is a budgeting procedure that companies and government agencies use to assess the potential profitability of a long-term investment. Capital investment analysis assesses long-term investments, which might include fixed assets like equipment, machinery or real estate. read more

Definition of capital investment analysis: Comparison of the sums to be invested in a project with the earnings expected over the period of the investment, expressed usually as return-on-investment (ROI) percentage per accounting period. read more

purchase a capital item must be paid out immediately, whereas the income or benefits accrue over time. Because the benefits are based on future events and the ability to foresee the future is imperfect, you should make a consider-able effort to evaluate investment alternatives as thoroughly as possible. read more