Capital Planning
Whether your organization is budgeting new desks for the finance team or is undertaking the purchase of a new building, the process of compiling, prioritizing, and approving new capital projects can be daunting. Ideally, businesses should pursue all projects and opportunities that enhance shareholder value. However, due to growth, cash flow, and other internal issues, management needs to use capital budgeting techniques to determine which projects will yield the most return over an applicable period of time.
With the HCG Prevision Capital Planning Module enterprise will be able to:
- Access a prospective project's lifetime cash inflows and outflows to determine whether the returns generated meet a sufficient target benchmark.
- Compare and contrast unlimited "what if" scenarios and versions.
- Assign purchase price, timing of purchase and utilization, project priority, and approval, down to the individual capital item.
- Track the effects of capital purchases on the income statement, balance sheet, and cash flow with Prevision's Budgeting and Reporting products
- Utilize the capital items list, GL accounting structure, and useful life schedules. No pre-mapping required.
- Harness multiple planning methodologies, including net present value (NPV), internal rate of return (IRR), discounted cash flow (DCF) and payback period.