This is the second in a series of articles that examines decision-making methods for the selection or rejection of individual projects throughout the project portfolio management process. These methods determine whether or not a given project (either proposed or in process) should be included in your next capital budget.
Capital budgeting is a multi-faceted activity that includes: the formulation and articulation of long-term goals; searching for new and profitable uses for investment funds; the proactive preparing of technical resources, marketing (of both the external or internal kind), and financial forecasts and estimates; the preparation of appropriation and control budgets and integration of these budgets in the firm’s information system; the economic evaluation of alternative projects; and the post-audit of performance of past projects.
Although all of these capital budgeting activities are important, this series narrowly examines only the following, albeit very-powerful, methodologies for selecting or rejecting projects…
Read more at:
http://www.developer.com/mgmt/article.php/3601061