#1Chapter 17 says there are four steps for the selection of capital investment projects 1)Generate alternative capital investment project proposals. 2) Estimate cash flows for each project proposal. 3) Evaluate and choose which investment project to undertake 4) When completed review the investment project to see which assumptions about the project were correct. What is the point of looking at the assumptions made after the investment was completed? Would it be better if the review was undertaken at earlier intervals, such as the mid-way point or sooner? Have you, or any one that you know of, been in a position where you had to review the assumptions made after the project was completed? Was it helpful? #2 as Chapter 17 mentions, investment analysis is important in the future success of a project. Proper planning, results in the longevity of projects to yield profits, which is the goal of all capital expenditures. The purpose of looking at the assumptions made after the investment was completed is to make any needed changes to the project that could use improvement. This is also a critical step in determining whether or not your investment was as closely related to the assumptions made, and if it was worth it. Reviewing the cash flow estimates is also important in determining whether to accept or deny a project. Would it be better if the review was undertaken at earlier intervals, such as the mid-way point or sooner? If the interval reviews can be handled without negatively impacting the project completion, I would say yes it could be better. I believe checkpoints could be rather beneficial in making sure all parties are on one accord and still on track with the same goal of reaching a successful completion of the project. Have you, or anyone that you know of, been in a position where you had to review the assumptions made after the project was completed? Was it helpful? No, not anyone that I know of comes to mind, but I believe that I have in a way. I only ever worked as a College Counselor as a professional full-time position. Typically, in my field, the types of projects that I would have to make assumptions about is SAT School Day attendance turnout, college applications or scholarship completion rates. For example, the most recent that comes to mind, SAT School Day is offered to all 11th graders on campus, and ideally, we’d love to have 100% attendance. However, we typically utilize previous “project” (EOC, Common Assessment) turnout rates and allow this to assist us in determining our assumptions for new “projects”. Our assumption is that 85% of Juniors were going to show up to take the SAT exam. At the end, after reconciling rosters, we found that 89% showed. I guess the assumptions were helpful, regarding determining the amount of supplies; calculators, pencils, etc. needed to minimize the last-minute challenges or overall disruption to the structure of the day and in turn, yield a successful project completion.