How can you identify capital improvement needs for new and rehabilitations projects? Please explain.

Expert Solution

Capital Improvement is an addition of some aspect to a property that will enhance the property's overall value. It also enhances the useful life of the property. Individuals, businesses and cities can make capital improvements to their property. Capital improvement projects and rehabilitation projects increases the market value of the property beyond its present state.

Identification of capital improvement needs for new and rehabilitation projects:

Capital improvement needs must be identified on the basis of the resources available.
Capital improvement needs are identified taking into consideration the requirements of the end users for whom the project is developed.
Consideration of many aspects such as the land acquisition required for the project, purchases of the equipment's and machinery required, the technical and technological infrastructure needed for the new project.
Analysing the minimum expenditure thresholds, minimum useful life and other related requirements.
Bifurcate between the capital expenditures and maintenance expenditures inorder to have proper accounting of repair / maintenance and capital improvement projects.
Analyse the phases of capital budgeting such as capital planning, capital budgeting development and execution, capital financing and asset management.
Identify and examine current and future infrastructural needs of the projects.
Identify the potential fiscal implications.

ekkarill92 answered 2 years ago

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