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Figuring ROI
The Nitty-Gritty
Capital expenditures. Cap-ex. Capital investments. Capital budgeting. And of course, return on investment, or ROI. Many companies use these terms loosely or even interchangeably, but they’re usually referring to the same thing, namely the process of deciding what capital investments to make to improve the value of the company. This chapter will teach you about traditional ROI analysis. Every HR manager should understand the approach. Not only does it inform your analysis of HR activities, but it also gives you the knowledge you need to participate in discussions with business partners about the proposals they are working on. Whenever capital expenditures are the topic of conversation, you will have the knowledge ...
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