2020 AFP FP&A Survey: Project Investment and Cost of Capital Survey


Financial Planning & Analysis (FP&A) professionals assist their organizations in making better decisions and allocating resources effectively. The project investment process is critical in accomplishing this.

The 2019 AFP Project Investment Decisions and Cost of Capital Survey research focuses on two parts of this critical function:

  • The process of project decision making
  • Updated research from the AFP 2013 Cost of Capital Survey

Key findings include:

  • In 2019, 41 percent of respondents analyzed less than three years of project investment cash flows, which is an increase from 2013 (11 percent).
  • Operating expense (Opex) projects differ from capital expense (Capex) projects in dollar size, project duration, and the choice of evaluation metrics.
  • The majority of companies (60 percent) use five or more financial metrics to evaluate projects.
  • Thirty-eight percent of companies have adopted agile methodologies but have not put in place all the mechanisms to become truly agile. 

Also included in this report are insights from Professor Aswath Damodran, Professor of Finance at New York University’s Stern School of Business.

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Contact [email protected] or call 301.907.2862 for more in-depth information, to read the full report or to arrange an interview with AFP Research.
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bryan_lapidus_web-(002)Questions about this subject?
Contact Bryan Lapidus, Director of FP&A Practice at AFP.