Methods of choosing the most profitable real assets among options that require different amounts for various periods of time

Kogan, Anton (2013): Methods of choosing the most profitable real assets among options that require different amounts for various periods of time.

Abstract

The article deals with the indicators used when making investment decisions in situations when it is necessary to invest different amounts of money in alternative real assets for different periods of time. The author suggests two new indicators: “the indicator of the speed of specific increment in value” (IS) and “conditional bank deposit” (CBD). The first indicator is used to choose the best investments that bring some profit. The second indicator is used to choose the best investments that do not directly bring profit, but are required for the operation of the company.

• Item Type: MPRA Paper
• Language: English
• Keywords: making investment decisions, comparison of efficiency
• Subjects: D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory; D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity; G - Financial Economics > G3 - Corporate Finance and Governance > G31 - Capital Budgeting ; Fixed Investment and Inventory Studies ; Capacity; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights

References

Richard A. Brealey, Stewart C. Myers, 2003, Principles of corporate finance, Seventh Edition. The McGraw-Hill Companies.

Richard A. Brealey, Stewart C. Myers, 2006, Principles of corporate finance, Eighth Edition. Irwin/McGraw-Hill.