search query: @indexterm DISCOUNTED CASH FLOW / total: 128
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Author: | Bonsack, R.A. |
Title: | How to justify investments in factories of the future |
Journal: | Management Review
1988 : JAN, VOL. 77:1, p.38-40 |
Index terms: | COMPUTERS INVESTMENT EVALUATION COST BENEFIT ANALYSIS RETURN ON INVESTMENT DISCOUNTED CASH FLOW |
Language: | eng |
Abstract: | Organizations implementing computer-integrated manufacturing (CIM) have moved many control and performance measurement activities out of the office into the factory. Three basic approaches to investment justification are as follows: the strategic evaluation, the cost-benefit analysis, and the mathematical simulation. In a recent survey of 1,000 major companies among the most often used methods were mentioned: the payback method, the return-on-investment method, and the discounted cash-flow method. Their strengths and weaknesses are discussed. The conceptual differences between CIM investments and more traditional capital investments are examined. Guidelines for CIM justification are listed. |
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