LIMITS ON THE EVALUATION METHODS OF INVESTMENT PROJECTS

Luiza Apostol

Abstract


To help companies that confronts the dilemma of selecting investment drafts, economic theory has developed criteria based mainly on quantitative elements in the analysis and selection of projects. In circumstances of risk and uncertainty, the typical decision problem regarding investment is sufficiently complex, allowing a number of possible outcomes for each strategy, results that are often dependent on conditions beyond the control of the decision maker. The purpose of this article is to discuss the most common methods of selecting investment projects, focusing on methodological limitations of their use, suggesting that no technical investment analysis can replace the contractor’s intuition, compelled to act in a difficult environment by definition.


Keywords


investments valuation; indicators of investment; entrepreneurship.

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Copyright (c) 2015 Luiza Apostol

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LUCRĂRI ȘTIINȚIFICE MANAGEMENT AGRICOL

ISSN print 1453-1410
ISSN online 2069-2307
(former ISSN 1453-1410, E-ISSN 2069-2307)

PUBLISHER: AGROPRINT Timisoara, Romania
PAPER ACCESS: Full text articles available for free
FREQUENCY: Annual
PUBLICATION LANGUAGE: English

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