Make long-term capital investment in environment

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Reference no: EM13914425

Peru's annual inflation rate for 1990 was 7,650 percent, an all time high for this country. In 1991, the annual rate dropped backed to approximately 140 percent. In September 1993, the annual rate was at approximately 20 percent, the lowest in 17 years. Given the higher rate in 1990, is it possible to make a long-term capital investment in this environment? Given the scenario above, if you were to make a capital investment, what are the characteristics that would be most important to you? Address financing, pricing, cost of inputs, and any other factors.

Reference no: EM13914425

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