The size of an investment project market conditioning factors

In our previous article we have seen the issue of the measurement of the size of an investment project and now continue with the theme of the design of the following investment projects:

The size of an investment project market conditioning factors are: the market, technology, the location, financing.

The market: determines us the quantity demanded, what volume can occur.

Methods for the optimization of the size of market: name some methods such as; Method of maximum utility, which depends on the economy of the size and the size of the project with growing demand, and the method for the determination of the critical mass technical.

Location: this aspect of pre investment aims to identify the site in which net income generated by the project are higher than in any other alternative site.

The location of the project refers to its location (macro i micro localization) in a site or physical specific place.

The location of a project is not the product of chance or conditions of preference, but that is based on comprehensive and technical analysis of the factors that influence it such as; legal factors, factors of production necessary to operate the production unit, etc.

Continuaremos…

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