What are some of the key factors affecting investment returns -
internal characteristics and external forces.
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What are some of the key factors affecting investment returns -internal characteristics and external forces.
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The following factors would affect Investment Returns 1 Interest Rates External Interest Rates would affect the cost of capital that the company has to pay to use that money For example if a company starts a project that would take five years to complete At the beginning of the project they borrow money at an interest rate of 4 per year And the company expects to earn 65 on its investment over the life of the project Over the next few years if the interest rate falls to say 3 it would make the project more profitable for the company but if the interest rate increases to 6 then the project might even become unviable 2 Economic Growth External The overall growth rate of the economy is important because in
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