Strategies for company’s whole portfolio of resources, and strategies for business unit’s products as well

The outlay of funds by the firm that is expected to produce benefits over a period of time longer than one year

A cash outlay that has already been incurred and that cannot be recovered regardless of whether the project is accepted or rejected

The return on the best alternative use of an asset; the highest return that will not be earned if funds are invested in a particular project

The process of evaluating and selecting long-term investments which are consistent with the firm's main objective of maximizing shareholders' wealth