search query: @indexterm Capital expenditure / total: 53
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| Author: | Arnold, J. H. |
| Title: | Assessing capital risk : you can't be too conservative. |
| Journal: | Harvard Business Review
1986 : SEP-OCT, VOL. 64:5, p. 113-121 |
| Index terms: | FINANCIAL RISK PROJECT FINANCING COST REDUCTION CAPITAL EXPENDITURE FINANCIAL FORECASTING |
| Language: | eng |
| Abstract: | No matter how convinced managers may be of a capital expenditure program's profit potential or strategic necessity, they should take a hard look at project's downside to make sure the company does not assume an imprudent amount of risk. Staying power analysis is a good way to do this. This method is a conservative way to assess the company resources available to repay loans under distressed circumstances. To see how well their company could withstand financial setbacks, managers can also use this method before embarking on a capital expansion program. |
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