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Entrepreneurship
Financial Viability of Investment Using Evaluation criteria
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Prepared by Sonia Afroze Khan, APMS 102

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ANALYSIS OF INVESTMENT CASES
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TERM PAPER ON

ENTERPRENEURSHIP AND BUSINESS PLAN BY SONIA AFROZE KHAN

Registration No.–APMS102
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DATE: 18 February 2013
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PART-1
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Introduction:
Three factors must be considered before accepting any project If the project is Technically Feasible, Commercially Viable, Financially viable. For evaluation of Financial Viability, we need to employ any of the following methods:

1. Net Present Value (NPV)
2. Internal Rate of Return (IRR)
3. Profitability Index (PI)

Investment decisions are generally called capital budgeting decisions. One of the main important concepts in analyzing investment is the concept of time value of. The value of a present amount in the past, present and future, founded by applying compound interest over time which is also known as future value. The future value of an investment may be increased by 1) earning a higher interest rate; and/or
2) by investing within an company stock,

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