Case for investment decision.
This query is : Resolved
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
How to evaluate whether to invest in this business or not? What all areas needs to be checked?
Thanks
16 November 2008
Use Net Present Value method...
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
If +ve, go ahead
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