Planned Unplanned Investment Assignment Help | Planned Unplanned Investment Homework Help


The investment is said to be a planned or intended or voluntary investment, which leads to a deliberate attempt to increase the existing stock of capital through addition to inventories or installation of an additional machine. It may be motivated by larger sales or by favourable market conditions. The enterpreneurs intend to undertake this investment during a given period of time according to the set target.

The unplanned or unintended investment, on the other hand, is a forced investment on the part of the entrepreneurs. It takes place when some unsold finished goods accumulate on account of poor sales. It does not go according to set targets.

The actual or the realized investment may not be equal to the planned investment. The realized investment is equal to the sum of planned and unplanned investment. When the unplanned investment is equal to zero, the realized investment will be equal to the planned investment. In brief,
      Realized  Investment  =  Planned Investment  + Unplanned Investment

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