Answer to Question #87929 in Macroeconomics for Martha

Question

The decision by a firm to invest is based upon the following, except

Answer 1

A firm's decision to invest in a particular project depends on the gains it is going to get in the process of this project's realization. These gains can have financial, social or other character. In the end, the final gains are compared to the initial investments. Companies use the following indicators to define investment attractiveness of a project: net present value, internal rate of return, payback period and return on investments, etc.