Most companies have procedures that call for an evaiuation of any any major expenditure of funds. These major investmaents in equipment, personnel, and oter assets are called capital projects or capital investments. The techniques that companies use to evaluatenproposed capital projects range from very simple calculations to complex computer simulation models. However, no matter how complex the technique, it always reduces to a comparison of benefits and costs. If the benefits exceed the costs of a project by a comfortable margin, the company invests invests in the project.