CONSIDERATIONS REGARDING THE INFLUENCE OF THE BASE LEADING RATE OVER INVESTMENT PROJECTS FINANCED BY EU FUNDS

The investment process is a complex economic process that implies risks. Allottingcapital resources in an investment project without using an adequate discount rate of the cashflows, which will take into account the evolution of the base leading rate of NBR (National Bank ofRomania), can lead to the total or partial loss of the invested capital by the European Union, byRomania’s government and by the applicants. There is a permanent concern from the experts tofind an adequate indicator to calculate the discount rate of the cash flows, which will be able toprovide an accurate image of the efficiency of an investment project and that will allow to make theright decision regarding the existent financing or capital investment alternatives.

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Year of publication:	2009
Authors:	Szora, Attila Tamas ; Dobra, Iulian Bogdan
Published in:	Annales Universitatis Apulensis Series Oeconomica. - Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia. - Vol. 1.2009, 11, p. 44-44
Publisher:	Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia
Subject:	discount rate \| base leading rate \| internal rate of return (IRR) \| net present value (NPV)

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; E22 - Capital; Investment (including Inventories); Capacity ; E43 - Determination of Interest Rates; Term Structure Interest Rates ; E58 - Central Banks and Their Policies ; G21 - Banks; Other Depository Institutions; Mortgages ; G31 - Capital Budgeting; Investment Policy
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008497475