Assessment of Capital Projects
DOI link for Assessment of Capital Projects
Assessment of Capital Projects book
Let us now look at the problem of choice. Funds are always scarce in relation to investment opportunities. This applies to national governments, business enterprises and all of us as individuals. If a government spends more money on the construction of new roads, there is less money to spend on social security, education, etc. If a hotel company spends more money on the modernization of existing units, it will have less money for expansion. Finally, if an individual starts spending more money on entertainment, he or she will have less money to spend on books, clothing, travel, etc.