When considering the benefits of different project options, companies have to compare new build against maintenance of existing assets, retiring old technology versus acquiring new (and possibly costly) technology, and whether to form alliances or acquire other players.
According to the respondents to KPMG’s 2015 global survey:
For half of respondents, capital is prioritized and allocated based on the expected financial returns of each investment opportunity, after accounting for risks and synergies. However, 36 percent prioritize essential capital first, and then prioritize based on alignment of the capital requests to strategic priorities, which deliver positive risk-adjusted financial returns, as well as other strategically important qualitative returns.
Which statement best describes the alignment of your capital plan to the overall corporate strategy?