Question

what are alternative capital projects?

Answer 1

Capital projects are very important projects for the company because they are investing the funds for the longer period of time and they are also involved for the longest perspective so there is a high risk which is involved in these projects and these projects are also having high impact on the sustainability and the growth rate of the company in the long run.so these projects are always needed to have some sort of alternatives in order to provide the company with risk management

Alternative capital projects are all such projects which will be acting as the alternative for large investments which are made into the capital projects because these will be offering risk management techniques for the company in order to manage the excessive risk arising out of the capital investments so these alternative capital projects will be investment in other assets which will be helpful for the company for management of all such risk arising out of the normal capital projects so the cash flows in the longer period of time can be managed properly and risk can be mitigated in order to maximize the return so these alternative capital projects are an alternate to the normal capital project in order to manage the risk.