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...
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Format: | Article |
Language: | English |
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University of Petrosani
2013-10-01
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Series: | Annals of the University of Petrosani: Economics |
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Online Access: | http://www.upet.ro/annals/economics/pdf/2013/part1/Mangu-Rascolean-2.pdf |
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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 |