After investing in capital assets, what should a company perform to compare the actual results to projections?

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The process of conducting a post-audit is vital for a company after it has invested in capital assets. A post-audit involves a comprehensive review of the actual financial outcomes and operational performance against the original projections made before the investment. This step is crucial to assess whether the investment has met the expected return or performance metrics.

By carrying out a post-audit, management can identify any variances, understand the reasons behind those differences, and use this information for future decision-making. It allows the company to determine the effectiveness of the investment, evaluate the accuracy of its forecasting methods, and make necessary adjustments to either enhance ongoing projects or improve future capital investment planning. Essentially, it is a reflective process that helps in refining strategic planning and investment strategies moving forward.

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