Investment decision making in project proposals

The amount of money that you have to pay to generate productive assets or goods for the purpose of earning from any project is called investment. All types of expenses, from start to finish, include investment in start up, fixed and variable costs. 

Investment analysis is very important when it comes to accepting or rejecting any type of project proposals. Through which investment decisions are taken. The income tax on the investment is to determine how much money is earned by investing 1 Taka a year. The important aspects of investing decisions in this regard are: –

  1. In making investment decisions, the rate of return on investment is higher than the interest paid on the investment. Then investing money can be decided. Since the project is financially sound.
  2. The project will not be financially viable if the income is less than the specified interest.
  3. Verification of multiple projects should focus on accepting all projects that have a higher return on investment.

 

The revenue and expenditure sector in the project budget

In any type of project budget there are two sectors, one is the expense sector and the other is the income sector. Expenditure is the cost of implementing and managing the project. On the other hand, the money generated by the sale of income of all kinds of products and products from the project. The expenditure and income sector can be divided into two categories.

Such as (a) gross expenditure and total expenditure (b) gross income and actual income.

Total Expenditure: – Total expenditure refers to the total cost of implementing a project. In this case, the depreciation of long-lived assets is eliminated on a yearly basis.

Total Expenditure: – The total expenditure is the total expenditure incurred in calculating the total expenditure, along with the interest calculation on the money invested annually or the money per production cycle.

Gross Income: – Gross income is the total revenue earned through the sale of all the products produced by the project and the other by-products generated by the project.

Project feasibility analysis is a description of several words that are inappropriate

Actual Income: – Proceeds from the project are the result of subtracting the total expenditure from the total proceeds from the sale.

Total Investment: – Total investment is the total investment and interest charged up to the specified time on the invested money.

Leave a Comment