ABSTRACT
The first big decision, which some may feel carries the greatest of all risks, is whether or not to start the project in the first place. Commercial projects normally must satisfy two basic criteria in order to be selected: wealth creation, and business merit. Wealth creation means quite simply that overall it should generate a worthwhile return for the expenditure incurred. Business merit implies that the project fits in with the organization's business strategy, either through retaining existing markets, developing new markets or making good use of the organization's assets. Return-on-capital-employed method has been used. Several variations have been devised for this technique both for calculating the capital employed and the return. A simple analysis to find the break-even point and expected profits may be all that is necessary if the undertaking is a very short-term one, perhaps over two or three years, and either of the above methods can be used to make a decision.
