FINANCIAL EVALUATION OF INVESTMENT PROJECTS PROFITABILITY
Justifiability evaluation of an investment projects is a very complex process which request appreciation and consideration of all relevant factors, first of all determining of the effects obtained by implementation of certain investments. In the evaluation process of an investment projects an import...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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University of Banja Luka, Faculty of Economics
2009-12-01
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| Series: | Acta Economica |
| Subjects: | |
| Online Access: | http://ae.ef.unibl.org/index.php/AE/article/view/205 |
| Summary: | Justifiability evaluation of an investment projects is a very complex process which request appreciation and consideration of all relevant factors, first of all determining of the effects obtained by implementation of certain investments. In the evaluation process of an investment projects an important function have assessment methods of their effectiveness. Using appropriate methods for the appraisal of investment projects profitability ensure the proper information and create prerequisites for the best projects selection and making quality investment decisions.
Key criteria for an investment projects evaluation are so called dynamic parameters such as internal rate of return, net present value, time of return on investment, etc.., while static indicators serve up as their complement. The lack of scientific preparation of investment decisions is one of the major causes of inefficiency and misdirected investment. |
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| ISSN: | 1512-858X 2232-738X |