To realize sustainable investments, capital budgeting should be a fundamental part within an investment project. Calculations often include only quantitative factors, the qualitative ones are ignored in most of the cases. This behavior results in an investment decision on incomplete data base. Quantitative factors like a high profit ratio or a short payback period are no guarantee for a reasonable investment; also qualitative factors have to be included in the planning process. In addition to the challenge of incomplete data, external factors have an influence. Therefore it is necessary to use a structured process to get a comprehensible investment decision. This paper develops a method which is able to combine capital budgeting instruments in a way to integrate quantitative and qualitative factors. Potential problems in the use case are identified and possible solutions shown. The mentioned method is tested in line with a practical example which output is critically analyzed.
|Translated title of the contribution||Evaluation of Investment Variations in Intralogistics|
|Publication status||Published - 2012|