Availability of funds.

All the projects are not requiring the same

level of investments. Some projects require huge amount and
having high profitability. If the company does not have
adequate funds, such projects may be given up.

Minimum Rate of Return. Every management expects a

minimum rate of return or cut-off rate on capital investment. It
refers to the point of below which a project would not be
accepted.

Future Earnings. The future earnings may be uniform or

fluctuating. Even though, the company expects guaranteed
future earnings in total which affects the choice of a project

Legal Compulsion. The management should consider the legal

provisions while-selecting a project. In the case of leather and
chemical industries, there are number of legal provisions
created to protect environment pollution. Now, the
management gives much importance to legal provisions rather
than cost and profit.

Ranking of the Capital Investment Proposal

Sometimes, a company has two or more profitable projects in
hand. If there is only one profitable project out of many and
huge amount is available in the hands of management, there is
no need of ranking of capital investment proposal. Ranking is
necessary if there is many profitable projects in hand and
limited funds is available in the hands of management.
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and-internal-rate-return-irr.asp

IRR vs Hurdle Rate

 Developing a recovery plan gives you a chance to consider how you will get your
business back on track if you do experience a crisis. It should include:strategies to
recover your business activities in the quickest possible time
 a description of key resources, equipment and staff required to recover your
operations
 your recovery time objectives
 a checklist you can use after a crisis has passed and it is safe to return to
your premises.