Investment Projects and Strategies

 

Investment Projects and Strategies

- Investment Project Model,

- Project Dynamic Analysis Measures,

- Technical/Financial and Economical Aspects of the Project,

- Current Net Value, Internal Rate of Return,

- Reduced Back Payment Time,

- Benefit Cost Ratio,

- Back Payment Time,

- Necessary Information for Investment Credit,

- Bank Analysis, Credit Evaluation,

- Swot Analysis (determining the strong and weak aspects of an establishment and submitting the opportunities and threads on outer environment)

 

Main Modellings utilized in the Investment Projects in General

 

Back Payment Time

It is the most used method in the evaluation of investment projects.

 

With it, the risk of the investment decreases and their liquidity increases and see if the investment of the investors are rational  or not without too much details.

 

Approximate Profitability Model of Investment

- It is the calculation of annual net profit and ratio of it to the amount of investment according accounting system and principles.

 

- Checking if the profit provided in the economical life of the investment has diversity or waving.

 

Current Net Value Model

- It is the Current Net Value, reduced cash flow model.

 

The current net value of the investment according to this model is the difference between total of reduced values upto today over the reducement limit determined previously of the cash inflow of the investment during its economical life and the total of value upto today over the determined reducement of cash inflow necessary for the investment.

 

For accepting an investment project, the current net value has to be positive; and if the current value of more than one project is positive, they all will be directed to the project with highest positive value.

 

The cash inflow of salvage value at the end of the economical life of the investment will be taken into account at the end of the project.

 

Internal Return Model 

- It is described as the reduction limit which equalizes the cash outflow necessary for the investment and cash inflow it will provide during its economical life. In this model, the reduction rate equaliazing cash inflow and cash outflow is calculated and the internal rate of revenue is determined.

 

Benefit Cost Model (Profitability Index) 

- It is the estimating of current value to the current value of cash outflow necessary for the investment over the determined reducement rate of cash inflow which will be provided by the investment during its economical life or benefit expense model rate of an investment. The having higher than one profitability index value of the investment is sufficient for the acceptance of the investment project; the purpose is to increase the rate to the highest in benefit expense model.

 

 

 

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