Factors of efficiency of investments

Since investment is an investment of capital for profit, its efficiency is based on profitability and capitalization.

There are several investment indicators:

the net value of the current project, which immediately after the transaction shows its effectiveness;
internal rate of return, which allows you to evaluate both investments in the project and the maximum costs;
an investment profitability index that shows the actual return on invested capital.
When making calculations, you should know that these indicators are both absolute and relative, as well as time-dependent. Continue reading →