Zusammenfassung der Ressource
Investment
Decision
- Steps to analize
- Step 1
- Forecast cash flows
- Step 2
- Estimate opportunity cost of capital
- Step 3
- Discount future cash flows
- Step 4
- Go ahead if PV of payoff exceeds investment
- Risk and Present Value
- Rate of
Return
Rule
Anmerkungen:
- Return = (profit / investment)
This rate must be higher than te opportunity cost of capital
- Multiple Cash Flows