Capital investment analysis is an on-line instrument for the evaluation of the efficiency of capital investment for a period of up to 10 years. It can be used for preparing a business plan and selecting the most attractive project to invest in.
Methods of evaluating investment projects are mainly based on a comparison of the effectiveness of investments in various projects. As an alternative to investing in the production, there are financial investments in other production businesses, putting money in a bank for interest or investing in securities. In financial analysis, implementation of an investment project can be represented as two interrelated processes: the process of investment in production facilities, and the process of earning income from the investment. They both have different timescales and to a large extent determine the efficiency of investment.
Analysis based on non-discounted and discounted methods (taking into account time value of money).
Capital investment analysis consists of: