Beyond the Numbers: Navigating Non-Financial Factors in Capital Investments

In this episode, we delve into the often-overlooked non-financial factors that influence capital investment decisions. While traditional metrics like net present value (NPV) are essential, they don't capture the full picture. Discover how external influences—such as political, economic, and social factors—and internal challenges within organizations shape project outcomes. We explore capital rationing, the profitability index, and a case study from Beldon Burton University to illustrate the importance of integrating qualitative analysis with financial appraisal for informed, sustainable investment choices.