This preview shows page 1. Sign up to view the full content.
Unformatted text preview: 1. Amount of Investment Cut off rate is the standard rate and it affects investment decisions. Amount of investment affects cut off rate’s determination. If investment amount is very high in any investment projects, then its cut off rate will be more than 10%. 2. Period of Investment If any investment project offers to pay the amount of investment in installments, then cut off rate will be very small but if investor has to pay all amounts within one installment, then cut off rate may be very high. 3. Risk factor If there is high risk with investment, then cut off rate will be high. If there is no risk of money, then investor can invest the money at very low cut off rate....
View Full Document
This note was uploaded on 10/19/2011 for the course FINANCE 302 taught by Professor Staff during the Fall '10 term at East West University, Chicago.
- Fall '10