MockQuestions MockQuestions
Job interview preparation
Sign in
Upgrade
Career Interviews
Interview Topics
Company Interviews
Close

When looking at the profitability of an investment, what other factors do you consider besides Net Present Value (NPV)?

Answer examples and advice for how to answer this interview question for a Financial Analyst interview

How to Answer

As you may have figured out by now, you will want to know terminology and formulas for your finance interview. The interviewer needs to ask these types of questions to make sure you know your stuff. NPV stands for Net Present Value, a factor that is used in assessing investments.

When looking at the profitability of an investment, what other factors do you consider besides Net Present Value (NPV)?
Answer example

"When looking at the profitability of an investment project, I consider future value calculations, compounding interest, and of course net present value."

View user-submitted Answers

When looking at the profitability of an investment, what other factors do you consider besides Net Present Value (NPV)?
1.
Detailed study about the project.
2.
Period of project, incoming fund flow and cash out flow, market condition, work certification procedure and payment period, client reputation, forex flatuation chances, etc.
3.
We consider the project at more than npv.
4.
Benefit cost ratio is another option.
5.
The commercial viability, alignment with company goals, incremental cost of the project.
6.
ROI, IRR, Cost benefit analysis and ratio .

Practice More Interviews

Behavioral
We all have some behaviors that are typical of us and which sometimes results ...
Common
There are some questions that employers ask at almost every interview. ...
Communication
Communication skills are essential for any workplace to function efficiently. ...
Leadership
If you are interviewing for any type of leadership role; prepare with our ...
Management
Our management questions are designed for any interview for a position ...
Teamwork
This set of questions aims to ascertain what your idea of teamwork is and ...