Investment Criteria Should Mature Counts

Investment criteria must be understood and understandable by anyone that wants to invest. Today, there are many channels of investment that you can do. From a large investment size, medium and small. Investments of each person is obviously very lean upon the ability of materials or money held by each person. You have to take into account the amount of investment that will be done with the amount of property owned.

Investment criteria is very bermnanfaat in measuring the benefits or advantages to be gained if the conduct of a business investment. Many people who bear the loss due to indiscriminate in doing calculations or even no measurable advance viablitas rate and profit share as well as its risk management when he invests. There are a lot of analysis used to measure the level of investment is possible and profitable or not.

Aspects of Investment Calculation
Well, in this article will try to discuss the financial analysis before investment is made. It should be explained that the financial analysis is a method of analysis used to account for costs incurred between the benefits to be gained during the investment was made. In this financial analysis of Net Present Value (NPV), NET / BC, IRR, and PP which will be explained as follows:

1. Net Present Value (NPV)
Net Present Value is the benefit gained in a lifetime of a project that measured at a certain interest rate. In this NPV calculation would need to be determined by current interest rates are relevant. In addition, the NPV can also be interpreted as the current value of the cash flow derived from an investment made.

2. Internal Rate of Return (IRR)
Gittinger Internal Rate of Return is defined as the profits earned by a company that invests and is expressed in units of percentage.

Or also mentioned that this is megakibatkan IRR Net Present Value equal to zero. Or, another reference dala mrupakan eskpekstasi IRR is the expected profit from the growing investment.

3. Net Benefit Cost Ratio (Net B / C Ratio)
Net benefit cost ratio is a unit that mmeperbandingkan between the present value (PV) positive with a negative PV. Or Net B / C ratio is expressed as the amount of return unit costs have been incurred to finance a particular project.

4. Payback Period (PP)
Payback Period (PP) is a method used to measure the return on investment when used in financing an investment. PP levels will be assessed either when the return on capital plus keutungan a business more in line with those calculated previously, or even sooner.

Well, hopefully what is described on the criteria of this investment can help you to be investing on a business. May be useful.