Issues regarding the Capital Investment Economic Efficiency Evaluation

Abstract:

Capital investments are the support of a certain degree of fructification of an investor’s capital. On the other side, the market economy offers very many possibilities of capital investments in various domains, among which any investor may choose the investment variant that fits its purpose best and that is subordinated to some interest of the moment mingled with some future interests. Such a possible investment variant is in productive corporation assets, in manufacturing capacities meant to bring profit, after they are commissioned.
The basic problem in this moment is if the respective investment will be or will not be profitable. In fact, we do not mistake if we try to define the investment as generally being a certain expense in the conditions of a more or less certain future. In order to remove the degree of uncertainty, it is necessary to make specific calculations for evaluating the capital investment economic efficiency. In this regard, this paper’s intent is to discuss some problems put by the capital investment economic efficiency evaluation so that the investment decision should be the correct one.

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