Finance Investment Evaluation Rubric
Finance Investment Evaluation Rubric
The Finance Investment Evaluation Rubric provided below serves as a comprehensive tool to assess the financial viability, market potential, risk assessment, and ROI (Return on Investment) potential of an investment opportunity. This rubric utilizes a five-point scale ranging from 'Very Poor' to 'Excellent' to evaluate each criterion. The aim is to offer a structured approach for evaluating investments, aiding stakeholders in making informed decisions.
1: Very Poor |
2: Poor |
3: Fair |
4: Good |
5: Excellent |
|
Financial Viability |
High financial risk and negative cash flows |
Significant concerns, limited cash flow |
Moderate stability |
Strong position, stable cash flows |
Exceptional health, robust cash flows |
Market Analysis |
Limited potential, high competition |
Challenging conditions, limited demand |
Steady demand, manageable competition. |
Attractive conditions, growing demand |
Exceptional potential, high demand |
Risk Assess- ment |
High risk, limited mitigation |
Significant risks, limited strategies |
Moderate risks, some mitigation plans |
Managed risks |
Strong management |
ROI Potential |
Negligible ROI, extended payback, uncertain growth |
Limited ROI, lengthy payback, modest growth |
Moderate ROI, reasonable payback, steady growth |
Attractive ROI, short payback, promising growth |
Exceptional ROI, rapid payback, substantial growth |