From the course: Cash Flow Cycles and Analysis

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Making capital investments work for you

Making capital investments work for you

From the course: Cash Flow Cycles and Analysis

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Making capital investments work for you

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- [Instructor] In order to increase the odds of success with capital investments, let's explore a few examples of things that we want to be sure that the investor or the operator has. One is expertise and knowledge in knowing what they're doing. Another is having operating experience, which is to say a track record proving that they know how to build and operate these types of assets. Ideally, the investment will have a quick payback. The sooner the payback, the lower the risk of lending to this investment. A high expected return is also nice as it provides an extra cushion for the lenders if something were to go wrong. It's very important to have thorough due diligence into the project and the operators of that project to minimize risk. To learn more about all these topic areas, be sure to take our course on assessing management, and we will walk through a balanced scorecard of how to assess a management team on all of these areas. Additionally, our Building a Financial Model in…

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