Investment and strategy evaluation: A personal computer model

A standard chore for most planning departments in strategically managed companies is evaluating capital spending strategies and alternatives. To make these evaluations, planners need to consider both financial and nonfinancial criteria since there are minimum financial requirements that have to be met before a potential investment can be taken seriously. No matter how attractive an opportunity may seem, it will fall by the wayside unless specific financial conditions—such as investment hurdle rates—can be satisfied.