Localfund.com - All about Fund and Investment
*Home>>>Investment Company

Investment decision in a company?


Investment decision in a company?

what specifically are you trying to asked?
If you asked how to decide an investment proposal, there are at least 4 approach:

1. Payback period
2. Benefit/cost ratio
3. Net Present Value
4. Internal rate of return

In pay back period approach, the rule is simple: the shorten the length of the projects to pay its investment back, the most likely it is decided to be choosen as an investment.
In Benefit/cost ratio, you count the benefit of the investment after say, 5 years, and compare it to its initial investment. The more higher its ratio the more it is decided to be choosen
In Net present value approach, you choose an investment that has higher and positive Net present value for a period of time, say 10 years (you can use MS Excell to count Net present value of an investment)
While in internal rate of return (IRR) approach you choose an investment that bear higher IRR in it and more than a mere interest rate (you can use MS Excell to count IRR for an investment)

Tags
  Investment Management   Investment Information   Investment Group   Investment Firms   Investment Company   Investment Calculator   Investment Bank   Investment Advice   Investment Account
Related information
  • Find a good name for my new company dealing in investment?

    United Enterprise inc.

    ...
  • How can I start my own cellphone company with low investment?

    The best routes to take are to research the process of starting a business as well as the industry you're interested in. I recommend checking out the SBA, Entrepreneur, The Start Up Journal...

  • Where do I check to find out if a network marketing company is worth my investment?

    There are several places that you can go to check out a networking marketing company to make sure they are legit. The first thing I would do would be to google the name of the company and see what...

  • How to sell my house to my company then rent it through my company as a investment for tax puposes?

    i had no idea about teh tax law abroad..but basically ewarn it directly is tahbest way for you to tax save..if you sell it to your company.a transfer tax would be impose..after which a sale tax.. t...

  • Investment - What dictates the stock price of "Company A" when it is purchased by another company?

    The stock might very well trade above $55 after Company B's bid for the very reason you cite, someone else might come along and bid more. Theoretically, there's no limit to how high it...

  • Can you leave your 401K at the investment house that your company uses when you are fired from your job?

    Yes you can. Problem is you can't add anything to it. Best bet is to rollover into an IRA if possible. You will have more choices than you will in a 401k program. Be careful though...m...

  • How would you measure potential returns on an investment in a private company?

    Look at the historical performance. Previous Year and Year-to-date. This will give you an indication of how the private company manages the investments.

    ...
  • How would I find my investment holdings in a company that I invested in four years ago?

    If you know the name of the company, you can search online for the ticker symbol and investment information. www.yahoo.finance.com is simple to use. You can also search the Wall Street Journa...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster