Table of Contents
What is eCPIC?
The Electronic Capital Planning and Investment Control System (eCPIC) is a government-wide, government-owned technology system and web-based service.
Why is capital planning important?
Capital planning is critical to water, sewer, transportation, sanitation, and other essential public services. It is also an important component of a community”s economic development program and strategic plan. Capital facilities and infrastructure are important legacies that serve current and future generations.
What does a capital plan include?
Capital Planning – The process of budgeting resources for the future of the organization’s long-term plans. Not limited to plans already in place, but also on the projection of future projects and their gains and losses.
What is included in a capital improvement plan?
What is a Capital Improvement Plan? A Capital Improvement Plan (CIP) contains all the individual capital projects, equipment purchases, and major studies for a local government; in conjunction with construction and completion schedules, and in consort with financing plans.
What are the three basic types of capital investment projects?
Types of Capital Investment Projects
- New Products or New Markets. Thomas Barwick/Stone/Getty Images.
- Expansion of Existing Products or Markets.
- Replacement Project Necessary to Continue Normal Operations.
- Replacement Project Necessary to Reduce Business Costs.
What is the purpose of a capital improvement plan?
A capital improvement plan (CIP) is a community planning and fiscal management tool used to coordinate the location, timing and financing of capital improvements over a multi-year period — usually 4-6 years.
How does NPV affect IRR?
IRR is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis. IRR calculations rely on the same formula as NPV does. Keep in mind that IRR is not the actual dollar value of the project. It is the annual return that makes the NPV equal to zero.
What are two types of capital investment?
The major three types of capital investment are mentioned below.
- Diversification. Diversification is the type of capital investment that requires the evaluation of proposals.
- Replacement and Modernization. Replacement and modernization is the second kind of capital investment.
- Expansion.