INFLATION INFLUENCE ABOUT INVESTMENT DECISION

                            Dorel Berceanu, Associate Professor PhD
                                     University of Craiova
                                  dorelberceanu@yahoo.com

                             Anca Băndoi, Associate Professor PhD
                                     University of Craiova
                                   anca_bandoi@yahoo.com


ABSTRACT: In this article, we are dealing with an issue very important as regards the
investment decision, namely the influence that it has on inflation. Thus, in a brief introduction
spotlighted how we have perceived inflation today, what it means and how it manifests itself.
An ample space in the paper is dedicated manner of determining the net present value in the
presence of inflation, with an emphasis on the link between the real interest rate, the nominal
interest rate and the inflation rate. To be convincing in our approach we introduced in the
last part of the paper a case study in which we showed how affects inflation on investment
decisions, in practical way.

Keywords: investment, decision, inflation, cash flow

JEL Codes: G 31