Decision Making Criteria
Cite five specific criteria that can establish befome make capital investments.?
capital investment decisions take into account the methods sensitive and do not consider the time value of money. In a period of rising prices and cost of money resulting from inflation, to cite at least five specific criteria to be established before making an investment now.
This is what I thought of the top of my head. 1. What will I get out of this investment (reward) 2. What do I have to pay? What are the risks? "I can cover or protect my investment? 3. How long will this take? 4. How much liquid is the investment? How long I'm engaged? What if I need the money sooner than expected? 5. What investment alternatives are there? 6. Do you understand me? Some ideas of the source under the existence of a strong secondary market, a more favorable tax structure, a flexible labor market, an entrepreneurial culture. "From five categories of investment criteria, the personality of entrepreneurs, the experience, the characteristics of the product or service, market characteristics, and financial characteristics, it appears that the financial characteristics are not considered as important as the other categories "
