A Simple Method for Calculating thei_minRate for an Investment Project

Properties of the Financial Break-Even Point in a Simple Investment Project As a Function of the Discount Rate

“…A rigorous evaluation of an investment project is crucial for the evaluation of its convenience, see the books (Alhabeeh, 2012;Bierman and Smidt, 1993;Bodmer, 2015;Brealey and Myers, 1993;De Pablo, Ferruz and Santamaria, 1990;Lopez Dumrauf, 2003;Suarez Suarez, 1991). Among the different methods to evaluate investment project we choose the net present value ( NPV ) (Baker and Fox, 2003;Beaves, 1988;Bric and Weaver, 1997;Chung and Lin, 1998;Grinyer and Walker, 1990;Hadjdasinski (1993Hadjdasinski ( , 1995Hadjdasinski ( , 1996Hadjdasinski ( , 1997; Hartman and Schafrick, 2004;Hazen, 2003;Kim and Chung, 1990;Lan, Chung, Chu and Kuo, 2003;Lohmann, 1994;Lohmann and Baksh, 1993;Moon and Yun, 1993;Pasin and Leblanc, 1996;Pierru and Feuillet Midrier, 2002;Prakash, Dandapani and Karels, 1988;Reichelstein, 2000;Roumi and Schnabel, 1990;Shull, 1992;Stanford, 1989;and Zhang (2005)). Assuming the absence of inflation we consider a simple investment project with the following parameters: 0 I  : Initial outlay which is amortizable in n years; 1 n  : Numbers of years of the explicit forecasted period of the investment project which make the same activities per year with only one product; Moreover, we also consider the annual amortization ( /0 A I n  ) which depends of two parameters and…”