Introduction

Capital expenditures represent the essence of strategic planning in a company, having a direct influence on its growth path, profitability and, eventually, ultimate sustainability. This process involves a dedication of financial resources into assets or undertakings which are considered to have a higher probability of long-term returns being generated. In short, it shall be the management to decide where to direct the capital of the company to different opportunities available, for example, replacing out-dated equipment, expanding operations, or venturing into new markets. In a swift-changing business environment where competition is aggressive and markets undergo constant transformations, a well-based decision-making process on capital investments is essential for companies that aim to outshine their competitors. The capital investments that pay off may help a company gain a competitive edge, become more efficient, and develop innovations, ever increasing the company’s profits and hence keeping its shareholders happy (Arreola Hernandez & Al Janabi, 2020). On the contrary, a lack of effective investment can result in financial losses, low market share and even the firm’s insolvency. Al Mansouri Enterprises is the name of the company based in Dubai; the case study will be set against the background of the business’s robust growth. Due to a history of the investiture in the most profitable projects, the company now stands ready to make a strategic capital investment for the approaching budgetary period. Mr. Mohamed, the operations manager, has used what we know as a seven-project portfolio, each with finance projections spanning over….

 

To get access to the complete article, please send an email at sales@thedocumentco.com