THE CHOICE OF INVESTMENT LOCATION – THE DETERMININING FACTOR OF ITS YIELD

Guta Anca Jarmila
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Guta Anca Jarmila: UNIVERSITY OF PETROSANI, FACULTY OF SCIENCES, SCIENCES ECONOMICS DEPARTMENT

Annals - Economy Series, 2016, vol. 4, 171-178

Abstract: The main objective of a financial manager is to use the funds of the company within its managerial authority, so that at long-term the firm obtains the investments yield at least as high as that which could be achieved through alternative investments, with similar risks. The second important objective is to maximize the present value of investment resources to achieve the higher yield as possible, without existing the undue risk. For maximization of the earning capacity of the firm, the resources are allocated in such a way that the earning are allocated in such a way that the earning capacity is transformed into a high efficiency as possible for the company. For achieving these objectives the measurement methods are needed to evaluate the company performance. A basic measurement method is the return on investment (ROI), which describes the relationship between profit and investment. The planning of a business regardless of the investment area must take into account the location of the investment project because of its importance to the future success of the company. In this context, the paper analyzes the main aspects concerning the natural environment and related geophysical conditions, the environmental impact of the project, socio-economic and governmental policies as well as the industrial infrastructure conditions, key issues in determining the efficiency of investment for a company with industrial production activity.

Keywords: investment; natural environment; environmental impact; socio-economical policies; governmental policies; industrial infrastructure. (search for similar items in EconPapers)
Date: 2016
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