Analysis of Investment Projects by Discounting Methods

Abstract

Investments are how the medium and long-term development of the enterprise is fixed. For each investment project, it is necessary to calculate and compare the resources invested with the results obtained. This research paper aims to analyse the efficiency of investment projects using discounting methods. Some highlights on the analysis of investment projects are presented, identifying the main outflows of funds and inflows of funds that are considered in the analysis of investment projects. Investment selection indicators are analysed: net present value and profitability index. The theoretical presentation is accompanied by a case study of an economic entity in Romania. The results of the research can be used by any economic entity to support investment projects.

Keywords

• capital
• discount
• investment
• net present value
• profitability index