Please note that UPSpace will be offline from 20:00 on 9 May to 06:00 on 10 May (SAST) due to maintenance. We apologise for any inconvenience caused by this.
 

Risk analysis and evaluation of capital investment projects

Loading...
Thumbnail Image

Authors

Hall, J.H. (John Henry)

Journal Title

Journal ISSN

Volume Title

Publisher

Faculty of Economic and Management Sciences, University of Pretoria

Abstract

In determining the feasibility of projects where capital investments are concerned, various methods are used. The focus of these methods is on return per se, so it is often asked to what extent any of these methods take the risk concept into account. The main objective of this study was to investigate the importance of risk with regard to capital investment projects. Secondly, with the aid of an empirical study, the study tried to establish whether risk is incorporated when South African companies evaluate capital investment projects. The empirical analysis indicated that risk analysis and evaluation in practice are to a large extent neglected by South African companies. It was found that nearly a quarter of companies estimate their annual cash flows using management subjective estimates alone.

Description

Keywords

Risk factors, Empirical analysis

Sustainable Development Goals

Citation

Hall, JH 2001, 'Risk analysis and evaluation of capital investment projects', South African Journal of Economic and Management Sciences, vol. 4, no. 2, pp. 398-411. [http://www.journals.co.za/ej/ejour_ecoman.html]