Definition for : Investment decision principles

"Any well-advised Investment decision must comply with the following six principles: consider cash flows rather than accounting data; reason in terms of incremental cash flows considering only those associated with the project; reason in terms of opportunity; disregard the type of financing; consider taxation; and above all, be consistent."

(See Chapter 18 Risk and return of the Vernimmen)

To know more about it, look at what we have already written on this subject