financial impact on investment decision
1. ROI return on Investment
technical: NPV direct link to shareholder's wealth how much the shareholder will earn on new investment.
2. share price significate on investment activities cost rising, short time profit drop
new project ---- increase cost direct cost, interst (cost of capital)
new project ----- higher risk level
strategic impact
investment impact whole business in long term
resource new finance
environment analysis--PESTEL (policital, economic, social(culture), technology, environment(pullution, legal(ethic))
SWOT (strengths, weakness, oppotuninty and threat) KEY factors identify
firm internal to identify key strength
ouitside identify key competitors and their reactions
risk appetite of shareholders