Assessment of the effect selected investments on the financial situation of enterprise

The investment and the decision about them are one of the most important activities in the company. The deci-sion can significantly affect the company. Bad decision can cause a bankruptcy in the worst case. Other way the good decision can cause in the future growth and development. It is very important for the company to make a good decision. The company can compete better. The company XYZ, whose data are choosen in the bacheleor thesis, make decision for the investment to the fixed asset specially the extension of the production hall. It increases the volume of manufactured products. The realization of the hall is financed from the subsidy of Ministry of Industry and Trade. The subsidy covers one third of the price. The rest is paid from the bank loan. In the work there are described the pre-investment preparation, different ways of investments and cases of invest. There are described the methods of evaluating the effectiveness of investments. In the second practical part there is counted the effectiveness of the specific investment. Then there is created the prediction to the future. In the end of the work the prediction is compared with the real status, which occurred in the company