Project Planning in Investment Decisions

Project planning is very useful tool for investment decision. Under project planning, we make written plan for purchasing of any fixed asset. In this planning, we create its various steps with bar chart. We  mostly use Gantt Charts for this. Project planning is also related with project management.

 If we have decided to buy all the fixed asset of company after following the steps of project planning, we can take steps as mention below.


Ist Step: To determine the objectives

First of all, we have to make the list of all assets which we have to buy. We also create excel sheet for this by mentioning all detail of each asset of company.

2nd Step: Estimate Cost

While estimating the cost of capital expenditure, we should check whether it is under the limited resources of company or not.

3rd Steps: Cost benefit analysis with capital budgeting

With the help of NPV or IRR or P.I., we can analyze the cost of project with its benefits.

4th Step: Changes in Project Plan

Gone of days, when company used fixed project plans and after making, there is limited possibility of changing the plans. Now, it has become the main steps of project planning.