Case for investment decision.

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Anil (Querist)
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15 November 2008 A business man is considering investing in business that involves a fixed exp towards fixed assest and steady outflow of cash for working capital. This business will yield a certain amount of money every year. In first year the yield of return will be less. In next all years it is fixed.

How to evaluate whether to invest in this business or not? What all areas needs to be checked?

Thanks

Deepak Agrawal

Deepak Agrawal (Expert)
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16 November 2008 Use Net Present Value method...

Deepak Agrawal

Deepak Agrawal (Expert)
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16 November 2008 Take all future expenses & income (variable or fixed). Then discount it & check whether NPV is +ve or -ve.

If +ve, go ahead

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