Think about the capital investment methods and criteria that have been discussed in this unit. Do you believe these are applicable for not-for-profit corporations or for government? That governments and not-for-profit organizations should evaluate investments using these techniques? Explain citing examples or research.
HI Sahil & Class,
Reading your comments about how charities and government action is not motivated by profit, I thought this was worth considering further.
Since I live in BC, I am very aware of the destruction caused by the recent storms in the west. Both the Federal and Provincial Governments will be spending huge amounts of capital to support rebuilding of highways, dams and other infrastructure, as well as supporting people who have lost their homes and have no flood insurance.
Class: In this sort of circumstance, will traditional concepts of capital budgeting be applied?