Reasons That Will Lead To Replacement Of Old Investments (Essay Sample)

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Investment
With the changing trend in the business world, the ways in which investments are being done has changed in a great deal. Globalization has made it difficult for investors to predict which types of invest are the best to get into. However, from time to time investors have been forced to do away with their old investments and seek new investments that are going to make then be relevant in the investment field and continue generating profits for themselves (John, 15).
As one of the investors when it comes to investments there are points where I can forgo old investments and seek new investments that are going to be more profitable to me. This will however depend on the size of project that will be undertaken, the cash flows that are going to be generated from the project, also the degree of dependence of on the project and also the benefits that are going to be got out of this project.
When considering a new investment project I will look at the present value then consider the future value of the project. If the project will be found to be having a future value that is higher than the present value then I will be forced to forgo the old investment. Also, the profitability of the project is one of the things that may make me to forgo old investments and seek new ones. If the new investments are going to be highly productive than the old then it will be prudent to shift focus to the new investments. Consideration of the economic value of inves...