文档介绍：The“ThreeRs”
By Kim E. Ruyle
Oversimplification of cost wo of the most important factors invested e from free cash
affecting any corporate investment flow—whatever cash is left after -
justification processes is a decision are the time value of pany takes what it needs for operations
real danger in calculating ofROImoney and the inherent risk of the and investment for the future.
Tinvestment. Both of these factors If an EPSS project, or any project, can
return-on-investment. Walk are considered in the following overview generate free cash flow at least equal to
through this cost-benefit of the basics of justifying investment in other projects available to pany,
an electronic performance support sys- it will normally be approved. (Of course,
analysis for an EPSS project, tem project. this assumes that pany has some
which notes oft-forgotten acceptable projects to invest in.)
Corporate Finance 101 Many projects proposed in business
ROI calculation details. Grand and glorious mission statements only generate free cash flow indirectly.
notwithstanding, the real mission of every Such projects are proposed as activities
for-pany is to generate an that will increase market share, improve
acceptable return on invested capital. product quality, or plish some other
In This Story What constitutes an acceptable return purpose that management believes wil