Post by account_disabled on Mar 10, 2024 7:08:29 GMT 1
Ebook After the Industrial Revolution About Last Entry Investment Project Analysis Assessment Business Management Operational Excellence Financial Management Business Analysis The purpose of a company's investment process is to gain some type of advantage whether it be a comparative advantage or a competitive advantage thereby enabling them to obtain greater future benefits or Simply put, stay competitive relative to other competitors in the market. Analysis and evaluation of different investment options are therefore key to deciding which projects to launch.
Traditional economics defines the economic concept of investment as giving up some immediate gratification in exchange for the hope of greater future benefits. This lack of certainty is precisely one of the fundamental BTC Users Number Data characteristics of any investment. New Call to Action Basic Features of Investment The attributes of any investment i.e. the defining elements that we have to analyze are as follows Risk i.e. the possibility of significant loss upon recovery of principal. Liquidity or the ability to be converted into cash without significant cost A highly liquid investment will be one that can be recovered within a relatively short period of time. On the other hand it is obvious that the less liquid the investment, the greater the risk of liquidation.
profitability or the ability to generate surplus funds above the initial amount invested In our analysis we will begin with a series of assumptions about the expected behavior of rational investors. The first is that investors seek to be risk averse and therefore riskier projects require additional compensation in the form of higher profitability. We will also assume that a rational investor will prefer today's currency unit to the same currency unit in the future and therefore he will also demand compensation for the risk incurred by delaying access to cash and the opportunity cost of allocating the unit of currency for that particular investment.
Traditional economics defines the economic concept of investment as giving up some immediate gratification in exchange for the hope of greater future benefits. This lack of certainty is precisely one of the fundamental BTC Users Number Data characteristics of any investment. New Call to Action Basic Features of Investment The attributes of any investment i.e. the defining elements that we have to analyze are as follows Risk i.e. the possibility of significant loss upon recovery of principal. Liquidity or the ability to be converted into cash without significant cost A highly liquid investment will be one that can be recovered within a relatively short period of time. On the other hand it is obvious that the less liquid the investment, the greater the risk of liquidation.
profitability or the ability to generate surplus funds above the initial amount invested In our analysis we will begin with a series of assumptions about the expected behavior of rational investors. The first is that investors seek to be risk averse and therefore riskier projects require additional compensation in the form of higher profitability. We will also assume that a rational investor will prefer today's currency unit to the same currency unit in the future and therefore he will also demand compensation for the risk incurred by delaying access to cash and the opportunity cost of allocating the unit of currency for that particular investment.