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P3 question

Forums › Ask CIMA Tutor Forums › Ask CIMA P3 Tutor Forums › P3 question

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Ken Garrett.
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  • October 28, 2019 at 2:00 pm #551086
    potjeka
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Can a manager be demotivated if all capital expenditure request must be support by detailed proposal including net present Value calculation that I submitted to head office?

    October 29, 2019 at 11:20 am #551130
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10591
    • ☆☆☆☆☆

    Yes. Some capital expenditure is for small amounts, like a new laser printer. It would be very demotivating to have to produce a detailed proposal for that.

    Usually, capital expenditure authorisations are geared to the amount of expenditure so that only expenditure over a certain amount has to be accompanied by a detailed proposal and NPV calculations.

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