Dynamic investment calculation

The dynamic investment calculation includes calculation methods for assessing the advantageousness of investment objects. Its characteristics, with which it differs in particular from the static investment calculation, are:

- It relates to all periods of use of the investment property
- It is based on deposits and withdrawals
- She uses financial mathematical methods.

Therefore it is much better suited than the static investment calculation to assess the advantages of investment objects. On the other hand, the dynamic investment calculation is more difficult to handle than the static investment calculation, so that it is used less frequently in practice.

The following procedures can be distinguished:

Net present value method
- Annuity method
- Internal rate of return method

Using financial methods makes it possible to consider the importance of the data over time. This happens through the interest, with the help of which a comparability of the deposits and withdrawals is brought about. For this purpose, the company must set the discount rate.

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