Investment Evaluation

Investment evaluation is the process of assessing the potential profitability and risks of an investment before committing funds. It involves analyzing key factors such as expected returns, costs, market conditions, and the time frame for returns. Common methods include calculating metrics like return on investment (ROI), net present value (NPV), and internal rate of return (IRR). By evaluating these aspects, investors can make informed decisions, determining whether an investment aligns with their financial goals and risk tolerance, ultimately helping them choose the best opportunities to grow their wealth.