This thesis started in January 2017. The Client Company gave us an assignment to investigate the profitability of an investment. The Client is a local producer of metal services. The decision regarding the investment was already made, but the company needed calculatory support concerning the profitability of the investment. The main purpose of the calculation was to get a view on the future profit earning capacity of the investment.

The aim of this thesis is to investigate the Client's investment-related cash flows and factors affecting them. The target of the investment is a metal processing CNC-machine. The machine not only speeds up production processes but also creates a significant competitive advantage for the Client Company.

The theoretical background of this thesis is based on literature concerning investments, investment processes and their profitability. The main source of data comprised of the interviews of the managing director of the Client as well as the financial key performance indicators (KPIs) of the Client. This thesis is a case study in which qualitative research methods have been used.

As a result of this thesis, the Client Company received investment related calculations such as the calculation of hourly wage, cash flows for the next five years, payback time and the financial statement. The Client will be able to use these calculations in order to get an overview of the future earnings potential of their current machine investment or any other future investments to come. The conclusion of the calculations is that – apart from the first year – the investment is going to be profitable. The potential profit of the investment could be even higher if there was a high-enough-demand of products in order to operate the machine in two shifts.