Capital expenditure decisions involve significant resources that are committed long into the future. As a result, we recommend that you spend considerable time and effort in evaluating plant asset proposals. The predicted cash flows must be compared to the required investments to determine if the return generated from each option meets or exceeds what management considers acceptable.
IARW has developed a helpful Return on Investment (ROI) Kit to assist your company in evaluating whether your refrigerated warehouse needs can best be met through construction of your company’s own distribution center or through use of one of the many public facilities available worldwide. In other words, is it better to construct your own facilities or “outsource” for space in public refrigerated warehouses?