Influence of Cycle Factors on Fixed-assets Investment Decision

Enterprise's growth is a process which from start to end and from prosperity to recession like biological organism.Enterprise's life cycle include following four-stage: pioneering development,rapid accelerating growth,mature growth and decline.If an enterprise only focus on scale expansion and investment in fixed assets at a irrational accelerating speed,i.e.beyond the enterprise's capacity of financial resource and other constrains in related stage,will result in excessive productivity which will affect the enterprises's sustainable operation and production suspension sometimes.This paper helps the enterprise to use scientific approach to make decision to investment in fixed assets from the viewpoint of life cycle analysis,and help enterprise in making rational investment scale and avoiding excessive investment.