In: Accounting
Factors Infulencing an Investment are given below:
1-Economic Growth-When an individual or Company want to invest they have to see economic growth because returns and economic growth are directly proportional if economy raise return raise if economy fall returns fal.
2-Availablility of finance- This also plays a major role because if the company or individual have raise there fund from long term source of finance then they should go for long term investment and if raised there fund for short time period then they should look for short term investment opportunity.
3-Confidence-It is one of factor where risk of the investment is judged that how much we are confident about our investment after analysing possible scenarios.
4-Interest Rate-This the one of the key factor where most of the people get influenced that how much they can expect a interest rate from an investment.
5-State of Technology-This factor is for companies the company should look at state of technology before investing if a company is labour intensive and think to invest in captial intensive assets then that investment will be a bad investment decision.