...
The corporate investment policy usually dictates that:
- investment Projects with PI ≤ 1 should be rejected
- investment Projects with higher PI should have a priority over the projects with lower PI
- investment Projects with lower PI are added up to the Investment Package to reach the pre-set value of affordable Initial Investment (I0)
- investment Projects with lower risk should have a priority over the projects with higher risk
The quantification of Project's is performed individually for each Project based on its nature.
Weighing the Project's risks against PI to include to or exclude from Investment Package is based on the Corporate Investment Policy.
See also
...