When assessing potential investments, investors utilize various criteria to determine if a given opportunity meets their objectives. Key factors considered include net present value, internal rate of return, payback period and profitability index. By analyzing these metrics, investors can compare options and select ones aligned with their goals.
Net present value for quantifying value creation
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Internal rate of return to estimate potential yields
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Payback period to gauge liquidity prospects
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In summary, applying appropriate invest criteria allows investors to thoroughly evaluate opportunities and make informed capital allocation decisions.