Normal investment
A normal investment is an investment with a payout (investment) at the beginning and then only repayments.
The payout can be one-time or over a defined period of time. In all subsequent periods, only repayments are made. The direction (in mathematical terms, the sign ) of the payment flow changes only once. This term of investment calculation is in contrast to non-normal investments , in which the direction of the payment flow changes several times.
Sometimes the normal investment also requires that there is only a one-time initial payment, no further later payments.
Multiplying the payments in a normal investment by a positive number results in a normal investment again.
The peculiarity of a normal investment is that its internal rate of return is clear (see Several internal rates of return ).
literature
- Erich Schneider: Profitability calculation. Investment theory. 8th edition. Tübingen 1973. p. 21ff. [1]