Profitability calculation methods in investment planning The profitability of an investment project is normally calculated by creating a discounted cash flow model, where the future cash flows are projected. The profitability is based on the difference between the present situation and the projected situation after the completion of the investment. If the project is not
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Profitability calculation methods
After reading this article you will..
- Understand how profitability is evaluated in investment projects
- Know what are the main profitability calculation indicators
Content
Business and investment planning
- Investment project fundamentals
- Business and investment planning in the forest industry
- Conceptual phase
- Pre-feasibility phase
- Feasibility phase
- Organisational learning in investment projects
Authors & references
Author:
Antti Lindqvist
References:
- 1. Diesen, M. 2007. Economics of the Pulp and Paper Industry, Papermaking Science and Technology, 2nd. ed., Paperi ja Puu Oy, Jyväskylä.
- 2. Yritysneuvottelukunta (2002). Yritystutkimuksen tilinpäätösanalyysi, Gaudeamus, Helsinki.
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This page has been updated 16.10.2020
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