ABSTRACT
Capital expenditure in both the USA and the UK has been booming for the greater part of the 1990s with the potential for high returns on investment drawing investors to the sector. The potential high risks inherent in such operations have fuelled the growth of separation of ownership and operational management control leading to an explosion of management contract arrangements. This chapter commences with definitions of capital expenditure, followed by a review of the financing options, then by a consideration of the capital investment appraisal techniques. These will be demonstrated in a case study.
