Project Evaluation and Financing - MIT OpenCourseWare
Project Evaluation and Financing - MIT OpenCourseWare
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)