Review article

Risk analysis in the economic evaluation of projects: example of Zagreb water supply system

Robert Kartelo

Abstract

The operative procedure for the risk and sensitivity analysis, aimed at determining critical variables in the economic analysis of capital projects, is presented using the Zagreb water supply system as an example. The Latin hypercube method is applied so as to determine the level of risk on individual projects based on two basic indicators: internal rate of return and the net present value. It is stressed that the accuracy of input data is of crucial significance for making well-informed investment decisions.

Keywords

risk analysis; critical variables; investment projects; Latin hypercube method; net present value; internal rate of return

Hrčak ID:

6804

URI

https://hrcak.srce.hr/6804

Publication date:

14.12.2006.

Article data in other languages: croatian

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