(Capital investments) understand costs of creation and reproduction of fixed assets as long-term investments into fixed assets. Capital investments can are carried out in the form of capital construction and acquisition of objects of fixed assets.
For planning and implementation of investment activity the preliminary analysis which is carried out at a stage of development of investment projects is of special importance and promotes adoption of reasonable and reasonable administrative decisions.
The examples reviewed in the previous sections, naturally, do not settle a set of situations when it is necessary to take various restrictions into account; besides, it is clear that not each situation which is found in practice can be described by rather strict analytical dependences. Also obvious is the fact that any similar formalization is always followed by some conventions and additional restrictions complicating use of the considered criteria. Let's give one more example showing that traditional recommendations, in particular, for criterion of PI are not always justified.
By criterion of NPV all projects are accepted. The criterion of PI gives the chance to range them on preference degree: With, B, A, D. As for drawing up a portfolio of capital investments, the number of options is limited here.