Expert systems capital budgeting

Abstract

The capital budgeting effects and cost justification of a high-technology innovation (expert system technology) are discussed from a managerial perspective. Budgeting strategies are reviewed as they relate to funding and support for high-technology innovations. The Defense Finance and Accounting Service-Cleveland Center (DFAS-CL) Expert System Program is reviewed from the points of view of average rate of return, payback, internal rate of return (IRR), modified internal rate of return (MIRR), accounting rate of return (ARR) and net present value (NPV) using the recently developed expert system 'COSTER'.<>