What Is Investment Decision Analysis?

Investment decision refers to the final decision made by the investment subject on investment activities on the basis of investigation, analysis, and demonstration. According to different levels, it can be divided into: (1) Macro investment decisions. From the perspective of the overall balance of the national economy, the process of making decisions on the investment scale, investment use direction, capital construction layout and key construction projects, investment systems, investment control measures and investment policies, and investment environment that affect the overall economic development. . Macro investment decisions directly affect the sustainable, stable, coordinated, and efficient development of the economy, and play an important role in the overall macro economic decision. Its mistakes are often the most direct reason for the great ups and downs of the national economy. (2) Micro investment decisions. Also called "project investment decision" refers to the final decision on the proposed construction project on the basis of investigation, analysis, and demonstration. The investment decision of a project involves the analysis, argumentation and decision of construction time, place, scale, technical feasibility, and economic feasibility. These are the primary links and key factors for the success or failure of investment. Micro investment decision is the basis of macro investment decision, and macro investment decision has guiding effect on micro investment decision. ^[1]

Investment decision

Is the most critical and important of all decisions

(1) Investment decisions are targeted. Investment decisions must be clear

Whether an enterprise has high growth mainly depends on the following factors: the cultural innovation, strategic innovation, technological innovation,

General approach to investment decisions:

The indicators used in the evaluation of investment schemes are divided into discounted indicators and non-discounted indicators. Discount indicators are indicators that take into account the value of time, mainly including

1. Evaluation index calculation examples of commonly used investment evaluation indicators

2.

Procedures for corporate investment decisions:

determine

Influencing factors of investment decision:

Generally speaking, the following factors are considered in project investment decisions:

(I) Demand factors

(II) Period and time value factors

(1) The period factor is determined by the composition of the project calculation period. Project calculation period refers to

Investment decision is the most critical and important decision among all the decisions of an enterprise. The mistake of investment decision is also the biggest mistake of an enterprise. An important mistake of investment decision may make a company in trouble or even go bankrupt. Avoiding non-scientific decisions is mainly to do the following two things:

First of all, it must be clear that investment is an economic behavior, and the influence of factors such as "politics" and "interpersonal relationships" must be overcome when making investment decisions. For the risks faced by the project, make a good forecast of the cash flow of investment projects. Only the investment decision that fully considers the time value of money and the value of investment risk is a more scientific investment decision and can achieve good results.