Analysis of the Shortcomings of the Investment Decision Method and its Improvement

Investment decisions are an important part of the pre-investment process. The correct method of decision making for investment projects directly affects the investment benefit of the project. However, various investment decision methods and theoretical analyses have deficiencies. These deficiencies will affect the actual valuation results leading to poor decisions, losses to the business or missed investment opportunities for the benefit of the business. Therefore, there is a strong need to analyze and improve on the shortcomings in the investment decision-making methodology. This paper mainly analyses the problems in the current financial evaluation for investment decisions and the shortcomings of the evaluation methods. It then proposes corresponding improvement and refinement strategies in light of these shortcomings.