Long‑Term Business Decisions and Investment Calculations: Evaluating Financial Feasibility for Company Projects

Abstract

This thesis explains how engineering managers evaluate whether long-term investment projects are financially practical and worth pursuing. A hypothetical manufacturing company is used as an example in this study. It frames strategic capital budgeting as an important managerial function with significant, long-term consequences. We evaluate a representative project utilizing several common tools, including Net Present Value (NPV), Internal Rate of Return (IRR), payback, and sensitivity, scenario, and Monte Carlo risk analyses. Risk-adjusted methods supplement static analysis to address uncertainty, improving decision accuracy. Finally, we compare the results with the literature and suggest how such investment decisions support firm strategy and value creation. It provides a systematic structure linking engineering economics and probabilistic risk analysis for decision making in long-term business to inform both theory and practice.