1. Static payback period (payback period for short) refers to all the time required to offset the original investment with the net cash flow of the investment project. There are two forms: "investment payback period includes construction period" and "investment payback period does not include construction period".
2. Also known as investment profit rate, it refers to the ratio of investment income (after tax) to investment cost.
3. Net present value is the difference between the discounted value of future cash flow generated by investment and the investment cost of the project. Net present value method is a method to evaluate investment schemes. This method uses the net cash income and the total present value of net cash investment to calculate the net present value, and then evaluates the investment scheme according to the net present value.
The net present value is positive and the investment scheme is acceptable; The net present value is negative, and the investment plan is unacceptable. The greater the net present value, the better the investment scheme. Net present value method is a relatively scientific and simple investment scheme evaluation method.
4. Net present value ratio (NPVR), also known as net present value ratio and net present value index, is the ratio of net present value to investment present value, indicating the net present value of unit investment. If the net cash rate is small, the unit investment income will be low, and if the net cash rate is large, the unit investment income will be high.
5. Profit index refers to the ratio of the present value of the future net cash flow of the investment scheme to the present value of the original investment. Profit index method is a method to evaluate the advantages and disadvantages of the scheme with profit index. When the profit index is greater than 1, the scheme is feasible, and the larger the profit index, the better the scheme.
6. Internal rate of return method is a method to evaluate the financial benefits of project investment with internal rate of return. The so-called internal rate of return is the discount rate that the total present value of capital inflow is equal to the total present value of capital flow and the net present value is equal to zero. If the computer is not used, the internal rate of return will be tried with several discount rates until the discount rate with net present value equal to or close to zero is found.
way
First, determine the investment objectives.
Determining the investment goal of an enterprise is the premise of investment decision. To correctly determine the investment objectives, we must do the following:
1. It is necessary to clarify the guiding ideology, the most needed links, its own conditions and resources, and the market environment.
2. We should consider combining immediate interests with long-term interests to avoid &; Quot Short-term and myopia &; Quot unfavorable conditions that may affect the overall and long-term development of the enterprise.
3. Scientific investment decision-making is the premise to ensure the effectiveness of investment. We should seek truth from facts, pay attention to the analysis and application of data, and not rely on slapping our heads to decide a crucial investment decision-making plan.
Second, choose the investment direction.
After the investment target is defined, the specific investment direction can be further drawn up. This is also very important, which is related to where the enterprise will develop in the future.
Third, make investment plans.
After deciding the investment direction, we should set out to make a specific investment plan and demonstrate the feasibility of the plan. Generally, more than two feasible decision-making schemes are needed, because it can compare and analyze different schemes, which is beneficial to the selection of schemes.
Four. Evaluate investment plan
This step is mainly to evaluate and analyze the investment risks and benefits, so as to determine the reliability of the investment decision-making scheme. Enterprises must control their risks within the range they can bear, and should not be too speculative or lucky. Once the risk faced by an enterprise exceeds its tolerance, it will make a big mistake and lead to the demise of the enterprise.
Verb (abbreviation of verb) Choice of investment projects
In a narrow sense, investment decision refers to the link that determines investment projects. The selected investment projects must be undertaken by personnel at the corresponding level. Put the responsibility to specific people, so as to be conducive to investment projects.
Six, feedback adjustment decision scheme and post-investment evaluation
After the investment plan is determined, the original decision must be adjusted in time according to the changing environment and needs to make the investment decision more scientific and reasonable.