If you invest in new equipment, it is worth investing if the return on investment is 5%. Of course, the higher the return on investment, the more worthwhile the investment is. A high return on investment proves that you make more money. Equipment investment return rate refers to the ratio of the benefits created by the equipment capital invested to the equipment capital invested. Equipment investment return rate = 100% × net profit created by the equipment during the reporting period/amount of capital invested in the equipment during the reporting period. If you want to invest in new equipment, you can calculate the return on investment based on this formula, and then calculate your income. When the return rate is 5%, it is worth investing.
: The advantage of return on investment is that it is simple to calculate; the disadvantage is that it does not take into account the time value of money and cannot correctly reflect the impact on the project of the length of the construction period, different investment methods, and the availability of recovery amount. The numerator , The comparability of the denominator calculation caliber is poor, and the net cash flow information cannot be directly used. Only investment projects whose investment profit rate index is greater than or equal to the risk-free investment profit rate are financially feasible.
In the process of equipment investment, there are 4 risks that must be avoided:
1: Without projects and resources, do not invest blindly
Investing in equipment can make money The premise is that the project construction party comes to rent your equipment in order to obtain the rental income of the equipment.
Of course friends who have resources and construction projects can invest on their own, but for those who cannot guarantee that the projects will continue to provide equipment operation opportunities, it is not recommended that individuals blindly invest "single-handedly".
Two: There is a quality risk if the equipment is replaced by the old one.
If non-industry people rush to purchase equipment, they may encounter the situation of "replacing the old one with the new one". , or there are some quality problems in the equipment, even some inconspicuous flaws are related to subsequent operational safety issues, and also affect the service life of the equipment, which directly determines the length of profit.
Three: One person "carries" the equipment, increasing costs and reducing profits
_Four: Blindly looking for a construction contractor, no guarantee of payment, and possible legal risks
Be careful when investing:
1. Be rational at all times when investing
Being rational is easier said than done. But if we get closer to rationality, this should be possible. For investors, to avoid large-scale investment failures, they should not just pursue high returns. In addition, investors should reasonably expect investment returns and allocate funds rationally, which will ultimately help you achieve your goals better.
2. Be conscious of saving. When it comes to saving, many people may despise it and think that money cannot be saved. We often hear people complain that they don’t have money to invest, but that’s not the case. If you pay attention to saving money, you can also find funds for investment. If you want to be rich, people always have to make choices, so some things that are more wasteful and less worthwhile in terms of spending money should be actively given up. Save money for investment and financial management. Therefore, saving is also a financial management skill.
3. Investment must be planned
With savings, you have a certain amount of funds. Once you have funds, you can invest. At this time, you need to test how to plan your investment. If you want to invest, you must have a complete plan.