An Essay By- 15821048The scope of activity of modern economic agents is no longer to simply sell their products and collect the revenues, but has become more complex. More specifically, although the ultimate goal remains that of recording profits, economic agents have changed their approach to achieving the goal. They now focus on satisfying customers, gaining company approval, and creating a conducive work environment for employees. In the context of growing challenges, economic agents are also presented with incremental opportunities, which aim to increase their revenues, improve production volumes, increase operational efficiency through technological improvements or expand into new markets and serve new customers. All these efforts are completed through capital investment projects. Capital investment projects are highly complex endeavors, traditionally understood as financial resources invested in an organization for the general purpose of cashing in on the profits generated by the respective investment. Two particularities to mention in relation to capital investments are that these can take place within the entity making the investment, or within another entity, and also that the capital is generally intended to cover the purchase of real estate (equipment, land, etc.), rather than using it to cover daily expenses (Ward). The success of capital investment projects varies and is sensitive to numerous factors. A particular belief is that the failure of capital investment projects is linked to the fact that related decisions are made improperly, that resources are misallocated, and that the correct...... middle of paper.... ..tment Risks, Federal Trade Commission, http://www.ftc.gov/bcp/edu/pubs/consumer/invest/inv03.shtm last accessed July 7, 2011 Kierulff 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 ratio – measures investment performance, Pro Apod, http://www.proapod.com/ Articles/real-estate-investing -for-beginners-12.htm last accessed 7 July 2011Osbornen Michael J. (2010) A resolution to the debate NPV-IRR? Middlesex University Business School, The Burroughs, Hendon, London NW4 4BT, United Kingdom Ward, S., Capital Investments, Information, http://sbinfocanada.about.com/od/financing/g/capinvestment.htm last accessed 7 July, 20112011, Net Present Value¸ Investopedia, http://www.investopedia.com/terms/n/npv.asp last accessed July 7, 2011