In order to optimally design and utilize any system or process, it is necessary to know the parameters within which the process must function. This thesis developed some of the more important organizational parameters affecting the capital expenditure process. A primary objective that has operational significance for capital expenditure decision-making purposes was developed. The primary objective was formulated in a framework of uncertainty utilizing the basic characteristics of a closed-loop information-feedback system. Since it was formulated in a framework of uncertainty, it allowed for variation; therefore, the limits of this objective were established. The enterprise damps oscillations in its complex interconnected system of objectives to assure relative stability within the limits of the developed primary objective. The damping methods employed by the enterprise place parameters on the capital expenditure process. The important parameters that were discussed are: 1. The common and unique characteristics that evolve from the pattern in which an enterprise increases in magnitude. 2. The organizational structure that evolves in an effort to plan, coordinate, and control all activities of the enterprise. 3. The administrative processes utilized within the framework of the primary objective and the organizational structure to perform all activities relative to the capital expenditure process. Although detailed design considerations were beyond the scope of this thesis, it was emphasized that an awareness on the part of the decision-maker that these parameters exist and have an impact on decision-making can contribute to improved capital expenditure decisions within an existing capital expenditure process. In the design or redesign of a capital expenditure process, it appears essential that they be considered. / Master of Science