Period of Recovery of a Capital Investment

Abstract:

Any investor, when making a capital investment decision, thinks at several things, which he pursues carefully, so that his available capital should be invested and fructified according to his expectations and in conditions of calculated risks. In such a context, the first thing an investor thinks about is the period of time when his invested capital is recovered. In this regard, it is understandable the natural desire of the investor that his capital attracted in the respective investment should be recovered in a shorter period of time. The reasons for which an investor interested in recovering his investment made in the shortest time possible are several, among which, two are the most important. One of these reasons is related to the fact that a capital that was investment and recovered makes the investor feel safe, as he is not related to a certain risk as regards the recovery of the respective capital. Another reason of the investor to be preoccupied by a rapid recovery of the capital refers at the fact that, in this way, the premises for new investments appear, associated with new gains, in time.

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