METHODS INDICATORS EQUIVALENCE FOR ECONOMIC RESEARCH OF THE LONG-TERM CAPITAL INVESTMENT PROJECT

In economics, projects having an economical life more than a yearlong are considered log term investments. An economic study of these projects cannot skip over the fundamental criteria represented by the economic indicator known as the “invested capital return”. The trend of merging of the most impo...

Full description

Bibliographic Details
Main Authors: SORIN-IULIU MANGU, ILIE RĂSCOLEAN
Format: Article
Language:English
Published: University of Petrosani 2013-10-01
Series:Annals of the University of Petrosani: Economics
Subjects:
Online Access:http://www.upet.ro/annals/economics/pdf/2013/part1/Mangu-Rascolean-2.pdf
_version_ 1818264288550191104
author SORIN-IULIU MANGU
ILIE RĂSCOLEAN
author_facet SORIN-IULIU MANGU
ILIE RĂSCOLEAN
author_sort SORIN-IULIU MANGU
collection DOAJ
description In economics, projects having an economical life more than a yearlong are considered log term investments. An economic study of these projects cannot skip over the fundamental criteria represented by the economic indicator known as the “invested capital return”. The trend of merging of the most important methods for economic study of long term investment projects have led to defining four fundamental methods: the internal rate of return method; -the explicit reinvestment rate of return method; the annual value method; the present value method. We could demonstrate the equivalence of these indicators for projects that allow application of these four methods.
first_indexed 2024-12-12T19:32:32Z
format Article
id doaj.art-ff12653fd7ef48f89911180c09145dd1
institution Directory Open Access Journal
issn 1582-5949
2247-8620
language English
last_indexed 2024-12-12T19:32:32Z
publishDate 2013-10-01
publisher University of Petrosani
record_format Article
series Annals of the University of Petrosani: Economics
spelling doaj.art-ff12653fd7ef48f89911180c09145dd12022-12-22T00:14:24ZengUniversity of PetrosaniAnnals of the University of Petrosani: Economics1582-59492247-86202013-10-01XIII1173182METHODS INDICATORS EQUIVALENCE FOR ECONOMIC RESEARCH OF THE LONG-TERM CAPITAL INVESTMENT PROJECTSORIN-IULIU MANGU0ILIE RĂSCOLEAN1University of Petrosani, RomaniaUniversity of Petrosani, RomaniaIn economics, projects having an economical life more than a yearlong are considered log term investments. An economic study of these projects cannot skip over the fundamental criteria represented by the economic indicator known as the “invested capital return”. The trend of merging of the most important methods for economic study of long term investment projects have led to defining four fundamental methods: the internal rate of return method; -the explicit reinvestment rate of return method; the annual value method; the present value method. We could demonstrate the equivalence of these indicators for projects that allow application of these four methods.http://www.upet.ro/annals/economics/pdf/2013/part1/Mangu-Rascolean-2.pdflong-term capital investment projectseconomic studyinternal rate of returnexplicite reinvestment rate of retournannual valuepresent value
spellingShingle SORIN-IULIU MANGU
ILIE RĂSCOLEAN
METHODS INDICATORS EQUIVALENCE FOR ECONOMIC RESEARCH OF THE LONG-TERM CAPITAL INVESTMENT PROJECT
Annals of the University of Petrosani: Economics
long-term capital investment projects
economic study
internal rate of return
explicite reinvestment rate of retourn
annual value
present value
title METHODS INDICATORS EQUIVALENCE FOR ECONOMIC RESEARCH OF THE LONG-TERM CAPITAL INVESTMENT PROJECT
title_full METHODS INDICATORS EQUIVALENCE FOR ECONOMIC RESEARCH OF THE LONG-TERM CAPITAL INVESTMENT PROJECT
title_fullStr METHODS INDICATORS EQUIVALENCE FOR ECONOMIC RESEARCH OF THE LONG-TERM CAPITAL INVESTMENT PROJECT
title_full_unstemmed METHODS INDICATORS EQUIVALENCE FOR ECONOMIC RESEARCH OF THE LONG-TERM CAPITAL INVESTMENT PROJECT
title_short METHODS INDICATORS EQUIVALENCE FOR ECONOMIC RESEARCH OF THE LONG-TERM CAPITAL INVESTMENT PROJECT
title_sort methods indicators equivalence for economic research of the long term capital investment project
topic long-term capital investment projects
economic study
internal rate of return
explicite reinvestment rate of retourn
annual value
present value
url http://www.upet.ro/annals/economics/pdf/2013/part1/Mangu-Rascolean-2.pdf
work_keys_str_mv AT soriniuliumangu methodsindicatorsequivalenceforeconomicresearchofthelongtermcapitalinvestmentproject
AT ilierascolean methodsindicatorsequivalenceforeconomicresearchofthelongtermcapitalinvestmentproject