A company must constantly invest, if only to replace defective equipment. But this is only one way of investing. Indeed, a company may also decide to invest to increase its production capacity. It will then be able to produce more. This is particularly the case when the company sets up a new plant or develops a new production line. This is called capacity investment. The company invests to increase its production capacity.

This video is an introduction to this chapter with 6 sub-chapters.

A basic case
Residual value
Working capital requirements
The break-even point
Inflations
The construction of the business plan

After viewing, by clicking on the “Next Step” button you can go to the first sub-step: the base case.

Have a good viewing!