Abstract

One of the issues which is included in the annual agenda of each governance process is the capital investment program. There are several reasons why capital spending is regularly reviewed in any company. First, capital investment is a major element in the financing of the company. Safeguarding the permanent financial stability is one of the overriding priorities in the governance process. Second, the direction of the future development of the enterprise is reflected in capital investment projects. There are no significant productivity improvements or no major growth initiatives without related capital spending.

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