Evaluation of the prospective profitability of new investment

Jasz

VIP Contributor
The profitability of new investment is the key to a company's future. Profit is an indicator of how much money a firm makes from its operations, and how much it pays out in dividends, salaries and interest payments. The more profit a firm makes, the more it can afford to pay out in dividends, which means that if you want to own shares in that company, most likely, your investment will pay off.
To evaluate whether a new project will make money you need to compare it with other projects that have been completed or are currently being carried out. You also need to take into account any risks involved with the project and calculate how much they could cost if they go wrong.

If you are looking at a new job opportunity then it may be helpful to look at what similar jobs have paid before making your decision - this is because although it's possible that your salary will increase over time, chances are there will be some other factor affecting your earnings such as inflation or taxes that could reduce them even further over time.
 
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