The objective of capital investment decisions includes allocating the company's capital investment funds in the most effective manner to ensure that returns are the best possible. The researchers indicated that there are basically four methods that have been used in practice: payback period (PP), internal rate of return (IRR), accounting rate of return (ARR) and net present value (NPV) used by companies to evaluate investment opportunities around the world (Atrill & Mclaney, 2008). The net present value (NPV) and internal rate of return (IRR) methods are considered discounted cash flow (DCF) methods. The payback period (PB) and accounting average rate of return (ARR) methods are the so-called non-DCF methods (Hermes, Smid, & Yao, 2006). The time it takes to get your refund is called the payback period (PP). . With the payback method, the required payback period establishes the threshold rate (threshold barrier) for project acceptance. (Lefley 1996) The payback method is generally used as a comparison between two or more projects and is widely accepted as a rule of thumb. In a survey conducted in India, Cherukuri (1996) analyzed that reimbursement was widely used as an “additional decision criterion”. The internal rate of return (IRR) is the discount rate often used in capital budgeting that makes the net present value of all cash flows from a certain project equal to zero. This essentially means that the IRR is the rate of return that makes the sum of the present value of future cash flows and the final market value of a project (or investment) equal to its current market value (Stefan Yard 1999) . The higher the internal rate of return of a project, the more desirable it is to undertake the project. A company's performance is often evaluated based on... middle of the paper... initially so that the young company's performance is poor. sales and marketing resources can be adequately focused. Factor analysis of the results indicates that venture capitalists appear to systematically evaluate ventures in terms of six categories of risk to be managed. These are: risk of losing your entire investment; risk of not being able to save if necessary; risk of failure to implement the business idea: competitive risk; risk of management failure; and risk of leadership failure (Macmillan, Siegel, & Narasimha, 1985). MacMillan et al. (1987) identified five similar types of risk which are management risk, competitive exposure, inexperience risk, sustainability risk and cash-out risk. Cresswell (2004) listed four risk factors that can influence investment decision making; politics and political factors, organizational factors, business process factors and technological factors.