This paper sets out to identify the correlation between the variations in spending and revenue as the investment progresses through time and the evolution of the financial discount rate and of the net present value; it also seeks a method for computing the probability of reaching a certain value....

According to the logics of the efficient capital investment, the management of the investment of the saving capital in the company’s assets must conclude, on the end of the financial year, with a plus of real value (NPV 0). From this point of view, in this paper we suggest the usage of an...

Cost-benefit analysis, used for the first time by the French engineer Jules Dupuit, is a practical method for measuring costs and benefits of investment projects. Costs and benefits arise both today and the future, and for that reason, in order to be aggregated and brought into comparison, it is...

This article intends to approach some aspects of the nuance regarding the issue of developing one investment decision evaluation in condition of uncertainty. The approach by researching the incertitude sources continues by presenting the use of actualization rate depending on the risk, the...

In the actual crisis context, investment project appraisals and capital budgeting, which involve assessing the financial feasibility of a project, should use Discounted Cash Flow (DCF) analysis. This paper tries to present good practice principles and rules in project appraisal and financial...

The mainstream in Finance studies recognizes the impact of tax shields on capital budgeting. This study offers some evidences regarding a bias in direct investment projects valuation in the case of taking into account of the allowance of recovery of the losses recorded in the past financial...

Applying cost-benefit analysis in education is aimed at evaluating the costs and benefits of public investment in education. The costs and benefits appear both in the present and in the future. One problem encountered in applying cost-benefit analysis in education is the time factor because, in...

The article looks into the performance issues, and the cost – benefit approach on audits, viewed in a broader sense (project management) but also analyses the limits of this approach, that can provide a quantitative dimension to the surplus value. With this purpose, the quantitative analysis...

Despite their shortcomings, the IRR and PI methods continue to be a widely employed evaluation techniques in capital budgeting. However, the internal rate of return (IRR) is often associated with a problem related to the fact that this technique assumes that the cash flows can be reinvested at...