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Cite five specific criteria that you would set befome making capital investments.?


Capital investment decisions take into account methods that consider and do not consider the time value of money. In a period of rising prices and cost of money resulting to inflation, cite at least five specific criteria that you would set before making a capital investment now.

This is what I thought of off the top of my head.

1. What am I going to get out of this investment (reward)
2. What do I have to pay? What are the risk? Can I hedge or protect my investment?
3. How long is it going to take?
4. How liquid is the investment? How long am I commited? What if I need the money sooner than expect?
5. What alternatives investment exist?
6. Do I understand it?

Some ideas from the source below

existence of a strong secondary market;
a favourable tax structure;
a flexible labour market
an enterprising culture.

"Of the five categories of investment criteria, entrepreneurs'
personality, experience, characteristics of product or service,
characteristics of market, and financial characteristics, it
appears that financial characteristics are not regarded as
important as the other categories"

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