Analysis of the Possibility of Using Dynamic Methods for Assessment of Investment Projects in the Domestic Foundry Industry

A comparative analysis involving the evaluation of the effectiveness of investment projects can be based on various rules indicating selection of the most favorable decisions. The dynamic methods for assessment of investment projects discussed in this article, which consider the possibility of modif...

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Main Authors: Szymszal J., Lis T., Gajdzik B., Kliś J.
Format: Article
Language:English
Published: Polish Academy of Sciences 2014-08-01
Series:Archives of Foundry Engineering
Subjects:
Online Access:http://www.degruyter.com/view/j/afe.2014.14.issue-3/afe-2014-0071/afe-2014-0071.xml?format=INT
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author Szymszal J.
Lis T.
Gajdzik B.
Kliś J.
author_facet Szymszal J.
Lis T.
Gajdzik B.
Kliś J.
author_sort Szymszal J.
collection DOAJ
description A comparative analysis involving the evaluation of the effectiveness of investment projects can be based on various rules indicating selection of the most favorable decisions. The dynamic methods for assessment of investment projects discussed in this article, which consider the possibility of modifying the predetermined investment options, are quite complex and difficult to implement. They are used both in the construction phase of the new company, as well as in its subsequent modernization. The assessments should be characterized by a high coefficient of the economic efficiency. The, observed in practice, high dynamic variability of both the external and internal conditions under which the company operates is the reason why in the process of calculating the economic efficiency of investment projects, there is a significant number of random parameters affected by high uncertainty and risk. Investments in the metallurgical industry are characterized by a relatively long cycle of implementation and operation. These are capital-intensive projects and often mistakenly taken investment decisions end in failure of the investment project and, consequently, in the collapse of the company. In addition, the applied methods of risk assessment of investment projects, especially the dynamic ones, should be fully understood by managerial staff and constitute an easy to use, yet accurate tool for improving the efficiency of the company.
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spelling doaj.art-be0e476f6a34406dad2c8718e1f1de212023-09-02T12:21:03ZengPolish Academy of SciencesArchives of Foundry Engineering2299-29442014-08-0114310310610.2478/afe-2014-0071afe-2014-0071Analysis of the Possibility of Using Dynamic Methods for Assessment of Investment Projects in the Domestic Foundry IndustrySzymszal J.0Lis T.1Gajdzik B.2Kliś J.3 Department of Production Engineering, Silesian University of Technology, Krasińskiego 8, 40-019 Katowice, Poland Department of Production Engineering, Silesian University of Technology, Krasińskiego 8, 40-019 Katowice, Poland Department of Production Engineering, Silesian University of Technology, Krasińskiego 8, 40-019 Katowice, Poland Centrostal Górnośląski sp. z o.o., Stalowa 1, 40-610 Katowice, PolandA comparative analysis involving the evaluation of the effectiveness of investment projects can be based on various rules indicating selection of the most favorable decisions. The dynamic methods for assessment of investment projects discussed in this article, which consider the possibility of modifying the predetermined investment options, are quite complex and difficult to implement. They are used both in the construction phase of the new company, as well as in its subsequent modernization. The assessments should be characterized by a high coefficient of the economic efficiency. The, observed in practice, high dynamic variability of both the external and internal conditions under which the company operates is the reason why in the process of calculating the economic efficiency of investment projects, there is a significant number of random parameters affected by high uncertainty and risk. Investments in the metallurgical industry are characterized by a relatively long cycle of implementation and operation. These are capital-intensive projects and often mistakenly taken investment decisions end in failure of the investment project and, consequently, in the collapse of the company. In addition, the applied methods of risk assessment of investment projects, especially the dynamic ones, should be fully understood by managerial staff and constitute an easy to use, yet accurate tool for improving the efficiency of the company.http://www.degruyter.com/view/j/afe.2014.14.issue-3/afe-2014-0071/afe-2014-0071.xml?format=INTComputer-aided foundry productionDynamic methods for assessment of investment projectsEfficiency calculus
spellingShingle Szymszal J.
Lis T.
Gajdzik B.
Kliś J.
Analysis of the Possibility of Using Dynamic Methods for Assessment of Investment Projects in the Domestic Foundry Industry
Archives of Foundry Engineering
Computer-aided foundry production
Dynamic methods for assessment of investment projects
Efficiency calculus
title Analysis of the Possibility of Using Dynamic Methods for Assessment of Investment Projects in the Domestic Foundry Industry
title_full Analysis of the Possibility of Using Dynamic Methods for Assessment of Investment Projects in the Domestic Foundry Industry
title_fullStr Analysis of the Possibility of Using Dynamic Methods for Assessment of Investment Projects in the Domestic Foundry Industry
title_full_unstemmed Analysis of the Possibility of Using Dynamic Methods for Assessment of Investment Projects in the Domestic Foundry Industry
title_short Analysis of the Possibility of Using Dynamic Methods for Assessment of Investment Projects in the Domestic Foundry Industry
title_sort analysis of the possibility of using dynamic methods for assessment of investment projects in the domestic foundry industry
topic Computer-aided foundry production
Dynamic methods for assessment of investment projects
Efficiency calculus
url http://www.degruyter.com/view/j/afe.2014.14.issue-3/afe-2014-0071/afe-2014-0071.xml?format=INT
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AT list analysisofthepossibilityofusingdynamicmethodsforassessmentofinvestmentprojectsinthedomesticfoundryindustry
AT gajdzikb analysisofthepossibilityofusingdynamicmethodsforassessmentofinvestmentprojectsinthedomesticfoundryindustry
AT klisj analysisofthepossibilityofusingdynamicmethodsforassessmentofinvestmentprojectsinthedomesticfoundryindustry