Capital Investment Project

Case Studies

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Capital Investment Project

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 often leads to 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.

A new product or a new target market could, conceivably, change the nature of the business. It should be approved by higher-ups in the business organization. A new project, either a new product or a new target market, requires a detailed financial analysis and the approval of possibly even the firm’s Board of Directors.

An example of a new product would be a new medical device that is conceived, researched, and developed by a company specializing in medical devices. Perhaps this medical device would tap into a target market that the company had not yet been able to reach.

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