Political and technological factor - investment decisions, Finance Basics

Political Factors and Technological Factors - Investment Decisions

i) Political factors - Under conditions of political uncertainty, that decisions cannot be completed as it will entail an element of risk of failure of that investment. Hence political certainty has to be analyzed before such type of decisions are made, such factors should be taken into account as like the company forecasts the outflows and inflows under given limitations like the degree of competition, changing tastes, performance of economy and so on such influence capability to create sufficient return from a venture that will pay not simply interest but principal on such funds invested.

ii) Technological factors - These influence the returns of the company since such technology will affect the company's capability to utilize its assets to the extreme capability in particular if that assets become obsolete and cannot produced good returns or the output of that machines may be low along with time and may not meet planned expectations such in most cases will have an impact on inflows as type of a venture.

Posted Date: 1/30/2013 4:54:34 AM | Location : United States







Related Discussions:- Political and technological factor - investment decisions, Assignment Help, Ask Question on Political and technological factor - investment decisions, Get Answer, Expert's Help, Political and technological factor - investment decisions Discussions

Write discussion on Political and technological factor - investment decisions
Your posts are moderated
Related Questions
Description of the deal, analysis of abnormal returns & premium (a)  Describe the transaction structure, mode of payment, and financing.  (b) Give your comment/assessment of

how can debentures be explained in class in term of game, role play etc....?

Setting a Reorder Point - ROP  Once the order quantity has been determined, the next question to be settled is when to place the order. If an order is released and it takes th

A current radio advertisement states that the average American household has an average credit card debt of $25,000. Based on an APR (Annual Percentage Rate) of 18% (common for cre

Elephant Company common stock has a beta of 1.2. The risk-free rate is 6% and the expected market rate of return is 12%. Determine the required rate of return on the security.

discuss the meaning and advantage of captive insurance

Discuss capital budgeting techniques including : the Payback Rule, IRR, NPV, and the Profitability Index. Be sure to discuss the advantages and disadvantages of each one.  Di

expression of underlying asset''s price at maturity T for lookback option.

Use the concepts of marginal cost and marginal revenue to derive an optimal capital budget for Company X, which has identified 7 possible investment projects and determined its cos

Illustrate the role of credit unions in depository institutions. Credit unions: Credit unions are non-profit institutions equally organised and owned through their member