Investment Valuation Techniques1. IntroductionAs defined by Cistelecan, L. (2002) investment is an “expenditure made now in order to obtain a successful future, by realizing gains in the future”. Investment is an essential and vital issue for businesses because it can ensure business growth and development, without which businesses cannot survive in competitive markets. (Katalininc, B. 2009) There are two types of investment as indicated by Virlics, A. (2013). These types are fixed investments and monetary investments. Fixed investments are tangible assets, such as buildings, machinery or a factory. On the other hand, monetary investments are stocks and bonds. From another point of view and as indicated by Götze, U., Northcott, D. & Schuster, P. (2008), investment can be classified according to the cause of the investment as follows: the following elements: Basic investment. Current investment. Replacement investment. Maintenance or repairs. Additional investment. Expansion investment. Investment in change (e.g. rationalization, diversification). Certainty investment. Making the right decision whether to invest or not is not a simple process. Without a solid, clear picture of future opportunities, businesses risk going bankrupt. Another point, lack of proper information about investment can lead to wrong decisions, and hence a well-defined method of investment evaluation is necessary. The need for investment evaluation techniques in the decision-making process is justified by Katalinic, B. (2009) as follows: New opportunities for business development and improvement can be provided by a complete investment analysis. Investment is associated with the reallocation of resources and liquidity, making a...... middle of paper ......(1). Published by DAAAM international, Vienna, Austria. Shively, G. & Galopin, M. (2000). An overview of benefit-cost analysis. Purdue University, Department of Agricultural Economics. [online]. [Accessed April 2, 2014]. Available at: http://www.agecon.purdue.edu/staff/shively/COURSES/AGEC406/reviews/bca.htmThe Manage Mentor Electronic Academy (TMM E Academy). (2003). Net present value. [online]. [Accessed April 2, 2014]. Available at: http://www.themanagementor.com/enlightenmentorareas/finance/mgr/NetPresentVal.htmVirlics, A. (2009). Decision making and investment risk. Sibiu International Economic Conference 2013 Post-crisis economy: challenges and opportunities. Published by Elsevier BV, Faculty of Economics, Lucian Blaga University of Sibiu. Watt, A. (2009). Understand the return on investment. New Zealand Business Magazine. Published by Adrenaline Publishing.