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Project Evaluation and Financing - MIT OpenCourseWare

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Strategic Objectives<br />

(Long Run)<br />

•Market Share<br />

•Growth Rate<br />

•Market Leadership<br />

•Technology Leadership<br />

Analysis of Financial<br />

Performance<br />

<strong>Project</strong> Decision<br />

•Does the project make financial sense?<br />

•Is the project within the overall strategic<br />

framework of the company?<br />

•If there is a clash between the objectives,<br />

has financial evaluation correctly taken all<br />

the costs <strong>and</strong> benefits into account?<br />

Financial Objectives<br />

(Short Run)<br />

•Return on Investment (ROI)<br />

•Return on Equity (ROE)<br />

•Return on Asset (ROA)

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