Question

Explain the following as factor affecting Long-Term Investment decision:

The investment criteria involved 

Answer 1

A number of investment parameters, such as return on investment (ROI), net present value (NPV), internal rate of return (IRR), payback duration, and risk considerations, affect long-term investment decisions. These standards aid investors in evaluating the long-term viability, risk, and potential profitability of investment options. In order to determine the probability of achieving the intended investment objectives, risk considerations include analyzing variables like market volatility, economic conditions, regulatory changes, and industry-specific hazards. Investors can make well-informed judgments about allocating capital to long-term investment projects that fit with their risk tolerance and financial objectives by taking these investment parameters into account.