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INVESTMENT DECISION MAKING

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Puni tekst: engleski pdf 166 Kb

str. 25-42

preuzimanja: 1.068

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Sažetak


Investment evaluation is the control of the planning and implementation of investment activities with regard to the objectives to be achieved. In this paper I assume the objective to be efficient outcome and profit maximization. This means that investment evaluation puts normative assessments into the context of planning and management and hence into the context of intentional action and cycles of action. Here not only the assessment of facts and scenarios is important but also the, more or less implicit, causal chains which connect activities with investment results and finally with goal achievement. The model for investment evaluation I propose has two money holders who must decide how to invest their money in two investment funds (financial intermediaries) that, in turn, will use the money to bid to acquire ownership in two projects. The general case when the number of money holders, the number of funds, and the number of investments are arbitrary may be handled in a similar manner to the development below, but at a cost of greater complexity. As a result no mechanism to achieve the maximum outcome is present and different methods to find optimal structure under uncertainty and different cost structures are discussed.

Ključne riječi

investment evaluation; profit maximization; uncertainty; coordination failure

Hrčak ID:

38178

URI

https://hrcak.srce.hr/38178

Datum izdavanja:

15.9.2008.

Podaci na drugim jezicima: hrvatski

Posjeta: 2.927 *