Evaluation Indicators for Investment Projects (II)

Abstract

After estimating all the specific elements of an investment (the cost for initiating the project operation, the discount rate for the risk level assumed, the cash flows estimated to be generated by using the investment), its feasibility can be evaluated. For this purpose, a series of established indicators can be used which will assess different aspects related to the execution of the investment.

Keywords

• unstable environment
• net discount value
• profitability index
• internal rate of return
• modified internal rate of return
• recovery time limit
• uncertain environment