Possibility of choosing development investment programs of a production company by applying discounted investment appraisal technique

The selection of development investment programs is one of the most important decisions in industrial production. The paper sets out the possibilities of applying dynamic criteria for investment decision making. It presents a practical numerical example for the value calculation of investment criter...

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Bibliographic Details
Main Authors: Vesić-Vasović Jasmina, Radojičić Miroslav, Nešić Zoran, Mihailović Đorđe
Format: Article
Language:English
Published: University of Novi Sad, Technical faculty Mihajlo Pupin, Zrenjanin 2014-01-01
Series:Journal of Engineering Management and Competitiveness
Subjects:
Online Access:http://scindeks-clanci.ceon.rs/data/pdf/2334-9638/2014/2334-96381401041V.pdf
Description
Summary:The selection of development investment programs is one of the most important decisions in industrial production. The paper sets out the possibilities of applying dynamic criteria for investment decision making. It presents a practical numerical example for the value calculation of investment criteria Net Present Value and Internal Rate of Return for the reviewed investment project solutions. In this manner it is possible to make an orderly set of alternatives with clear preferences for the most suitable alternative in comparison with other ones. Such rating of project solutions will enable the decision maker to emphasize advantages with more arguments and select the most suitable project solution in accordance with the established criteria, conditions and limitations.
ISSN:2334-9638
2217-8147