How Can Business Leaders Assess Investment Opportunities?
To assess investment opportunities, business leaders can use various techniques such as:
- SWOT Analysis: Evaluating the strengths, weaknesses, opportunities, and threats related to the investment. - Cost-Benefit Analysis: Comparing the expected benefits with the associated costs. - Net Present Value (NPV): Calculating the present value of future cash flows from the investment. - Internal Rate of Return (IRR): Determining the discount rate at which the NPV of the investment is zero. - Payback Period: Estimating the time required to recover the initial investment.