Investment decision

Anil (1638 Points)

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