Investment decision

Knowledge resource 819 views 3 replies

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

Replies (3)

u can consider net present value method to check its profitabilty

beside it u must consider other qualitative factors .........

riskiness bearing power,liquidity position etc.there r numerous factors to b considered.......

I agree with Madhur..

 

u can consider IRR method as well


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