Investment Decision

  • 2 Posts
  • 1 Sections
  • 1 Types
August 31, 2024 4 min read Definitions
Profitability Index: An Essential Tool for Project Evaluation
Finance Economics Investments Profitability Index Project Evaluation Investment Decision Discounted Cash Flow Financial Analysis
Profitability Index (PI) is a method used in discounted cash flow for ranking a range of projects under consideration. It helps determine the value of projects by comparing their profitability, facilitating optimal decision-making.
Read more about Profitability Index: An Essential Tool for Project Evaluation.
August 31, 2024 4 min read Definitions
Sunk Cost Fallacy: The Result of Misguided Investments
Economics Behavioral Economics Decision Making Sunk Cost Investment Decision Economic Behavior Cognitive Bias Irrational Decision
The Sunk Cost Fallacy is the phenomenon whereby decision-makers continue investing in a project due to the amount already invested, despite new evidence suggesting that the cost will not be recovered.
Read more about Sunk Cost Fallacy: The Result of Misguided Investments.

Finance Dictionary Pro

Our mission is to empower you with the tools and knowledge you need to make informed decisions, understand intricate financial concepts, and stay ahead in an ever-evolving market.