e-Learning Capital Budgeting Decision Models: A Comparative Analytical Study

In today´s fast paced business environment, the management of financial resources is a key to organization success. Organizations view learning increasingly as a competitive advantage. E-learning platform serves as an intermediary brining those who need content with those who can provide it [9]. Moving information to people instead of people to information is a better solution to meet exceeding training needs of employees and reduce costs. Before a management decides to implement an e-learning system they should know the goals which will be met by the system. These goals should primarily be quantitative goals. Every engineering investment decision involves a comparison of alternatives. A cost-benefit analysis should be carried out for each alternative and given to the management. This analysis will be essential for a management to decide which solution they would like to implement. Feasibility of meeting goals with available technology, human resource and cost/benefit are important parameters for informed management decision-making. Capital investment is dealing with major investments that will shape the future of an organization [1]. Because capital investment decisions involve the commitment of resources now, hopefully for future benefits, they are all subject to risk. If the future was known with certainty, decisions regarding the future would be simple, but because the future is unknown it is worth attempting to forecast what may happen by the use of evaluation techniques prior to the project´s inception [1], especially under fluctuating economic environments. The bottom line in many e-learning projects is economic feasibility. E-learning feasibility study is a management-oriented activity. E-learning appraisal is the process of assessing and questioning proposals before resources are committed. A feasibility study leads to a decision go ahead, do not go ahead, or think again. A feasibility study is valuable for starting a new business, expansion of an existing business, adding an enterprise to an existing business, or purchasing an existing business. So, in this research, I will illustrate some economical dimensions of e-learning appraisal such as: cash flow forecasting, net profit, payback period, return on investment, net present value, and internal rate of return using an analytical methodology and a comparative analytical study between these dimensions.