An Essay By- 15821048The scope of activity of modern economic agents is no longer simply selling their products and collecting the income, but has become more complex. More precisely, even if the ultimate objective remains that of recording profits, economic agents have changed their approach to achieve this objective. They now focus on satisfying customers, gaining company approval, and creating a favorable work environment for employees. In a context of increasing challenges, economic agents are also presented with additional opportunities, which aim to increase their income, improve production volumes, increase operational efficiency through technological improvements or expand into new markets and serve new customers. All these efforts are complemented by capital investment projects. Capital investment projects are extremely complex endeavors, traditionally understood as financial resources invested in an organization with the general aim of cashing in on the profits generated by the respective investment. Two particular features worth mentioning regarding capital investments are that they can take place within the entity making the investment, or within a different entity, and also that capital is generally intended to cover the purchase of fixed assets (equipment, land and etc.), rather than using them to cover daily expenses (Ward). The success of capital investment projects varies and is sensitive to many factors. A particular belief is that the failure of investment projects is linked to the fact that adjacent decisions are made inappropriately, resources are poorly allocated and the right middle of paper .... ..tmentrisks, Federal Trade Commission, http://www.ftc.gov/bcp/edu/pubs/consumer/invest/inv03.shtm, last accessed July 7, 2011Kierulff Herbert (2008) MIRR: A Better Measure School of Business and Economics, Seattle Pacific University, 3307 Third Avenue West, Seattle, WA 98119, USA Kobzeff, J., Profitability Index – measuring return on investment, Pro Apod, http://www.proapod.com/Articles/real-estate- investing -for-beginners-12.htm, last accessed July 7, 2011Osbornen Michael J. (2010) A resolution to the NPV-IRR debate? Middlesex University Business School, The Burroughs, Hendon, London NW4 4BT, United Kingdom Ward, S., Capital Investment, About, http://sbinfocanada.about.com/od/financing/g/capinvestment.htm, last accessed times July 7, 20112011, Net Present Value¸ Investopedia, http://www.investopedia.com/terms/n/npv.asp, last accessed July 7, 2011