A new capital investment project is important for the growth and expansion of a company. It is also important for the economy at large as it means research and development. This type of project is one that is either for expansion into a new product line or a new product market, often called the target market.
There are typically three main reasons for a business to make capital investments:
- to acquire additional capital assets for expansion, enabling the business to, for example, increase unit production, create new products, or add value;
- to take advantage of new technology or advancements in equipment or machinery to increase efficiency and reduce costs;
- to replace existing assets that have reached end-of-life – for example, a high-mileage delivery vehicle or an aging laptop computer.
MONEY NETWORK provides right consulting or guidance to customer regarding capital project investment.