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Project Description : Investment decision making is very obviously a vital activity in business. Vast sums of money can be easily wasted if the investment turns out to be wrong or uneconomic. The subject matter is difficult to grasp by nature of the topic covered and also because of the mathematical content involved. However, it seeks to build on the concept of the future value of money which may be spent now. It does this by examining the techniques of net present value, internal rate of return and annuities. The timing of cash flows are important in new investment decisions and so the study looks at this "payback" concept. One problem which plagues developing countries is "inflation rates" which can, in some cases, exceed 100% per annum. This study shows how organization can take this in to account.
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