IDEAS home Printed from https://ideas.repec.org/a/agr/journl/v7(560)y2011i7(560)p5-18.html
   My bibliography  Save this article

Characteristics of Criteria for Selecting Investment Projects under Uncertainty

Author

Listed:
  • Dan ARMEANU

    (Bucharest Academy of Economic Studies)

  • Adrian ENCIU

    (Bucharest Academy of Economic Studies)

  • Dorina POANTA

    (Romania Banking Institute)

Abstract

Within financial theory and practice, there are used five main criteria for selecting investment projects: the net present value (NPV) criterion, the internal rate of return (IRR) criterion, the return term (RT) criterion, the profitability ratio (PR) criterion and the supplementary return (SR) criterion. The assay will emphasize several new properties of said indexes for investment assessment, having as starting point the hypotheses of (approximately) normal repartition of cash-flows generated by an investment project. The obtained results point to the fact that the NPV indexes (the analysis of this criterion was carried out in the article “The NPV Criterion for Valuing Investments under Uncertainty”, Daniel Armeanu, Leonard Lache, Economic Computation and Economic Cybernetics Studies and Research no. 4/2009, pp. 133-143), IRR, PR, RT and SR register normal repartitions, therefore simplifying the investment analysis under economic uncertainty, by the capacity of building confidence intervals and assessing probabilities for the inferior limits of said investment assessment indexes.

Suggested Citation

  • Dan ARMEANU & Adrian ENCIU & Dorina POANTA, 2011. "Characteristics of Criteria for Selecting Investment Projects under Uncertainty," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(7(560)), pages 5-18, July.
    • Handle: RePEc:agr:journl:v:7(560):y:2011:i:7(560):p:5-18
    as

    Download full text from publisher

    File URL: http://store.ectap.ro/articole/608.pdf
    Download Restriction: no
    File URL: http://www.ectap.ro/articol.php?id=608&rid=76
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oana Ramona LOBONȚ & Roxana BUCUREAN, 2018. "Cost-Benefit Analysis Methodology For Investments In Refractive Surgery," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 18, pages 379-386, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:7(560):y:2011:i:7(560):p:5-18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mircea Dinu (email available below). General contact details of provider: https://edirc.repec.org/data/agerrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.