PROFITABILITY ASSESSMENT OF INVESTMENT PROJECTS OF DIFFERENT ECONOMIC DURATION
Journal Title: Acta Economica - Year 2011, Vol 9, Issue 14
Abstract
When any project economical effectiveness is estimated by net present value, each project having either positive or zero net present value can be accepted provided that such project does not depend on other projects. In case of mutually exclusive projects of equal duration, the project of highest net present value will be accepted. However, in case of mutually exclusive projects of unequal duration, deciding which project is the best one is based on using various methods such as: reinvestment, cash flow method, replacement chain method and method of equivalent annual annuity.
Authors and Affiliations
Милорад Иванишевић
Keywords
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