Efficiency of Capital Investments in the Context of Time Factor

The correct evaluation of the economic efficiency of a capital investment is a purpose any investor must accomplish, if he wishes to make a correct and efficient investment decision. In such a context, it results that, beside the investment efforts and effects, there must also be considered another factor: TIME. Any calculation of the economic efficiency, generally, of the capital investment, particularly, which takes place beyond the reminded influence cannot lead to a correct investment decision. The influence of time in calculating the evaluation of the efficiency of a capital investment may confirm, but also may infirm the decision which could have been made only based on the static calculations, except for the reminded influence. Below, we shall present a few more relevant aspects of the implications of time in the calculation of the economic efficiency of the capital investment, which, eventually, would lead to making an efficient investment decision, with full knowledge of the facts.