Evaluating the Effectiveness of the Investment Project

Bakytkan Dauletbakov; Galym Dauletbakov

doi:doi:10.11648/j.eco.20150404.11

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Evaluating the Effectiveness of the Investment Project

Bakytkan Dauletbakov, Galym Dauletbakov

Published in Economics (Volume 4, Issue 4)

Received: 29 May 2015 Accepted: 6 July 2015 Published: 15 July 2015

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Abstract

Evaluating the effectiveness of investment projects is a prerequisite for the selection of the investment portfolio generated by the investor, and based on a number of traditional criteria: NPV (Net Present Value), IRR (Internal Rate of Return), PP (Payback Period), PI (Profitability index) and NFV (Net Future Value). We propose a model of multi-criteria decision-making on the selection of a portfolio of investment projects selected in terms of their effectiveness, based on the modification of the classical NPV (Net Present Value). In particular, the features and options compared NFV (Net Future Value) - efficiency test. In this direction, we should expect interesting results from a scientific and practical point of view. Our approach to assessing the effectiveness of investment projects based on the method of selection of optimal projects taking into account the set of criteria, intended to build interactive decision-making procedures, as the possibility of using rigorous methods, and knowledge and experience of the decision maker (DM). There are various approaches to selecting the resulting unnormalized preference relations on the basis of a plurality of predetermined. The simplest of these is the approach based on the principle of Borda that we have proposed in [17]. In this article we provide a description and the main approaches to the selection criteria by which assesses the effectiveness of possible variants of the portfolio of investment projects. It uses the methodology of constructing a set of solutions based on the Pareto principle.

Published in	Economics (Volume 4, Issue 4)
DOI	10.11648/j.eco.20150404.11
Page(s)	57-63
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Criterion, Multicriteriality, Efficiency, Portfolio, Investment Projects, Decision Maker, The Pareto Solutions

References

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[4]	Sharpe W.F., Gordon J.A., Bailey I.V. Investments. N.Y .: PrenticeHall, 1995.
[5]	Naumov A.A, Khodusov NV Management of portfolio investments. Models and algorithms. - Novosibirsk: Offset, 2005. - 298 p.
[6]	http://www.unido.ru/resources/software/comfar.
[7]	http://lib.sportedu.ru http://cfin.ru/management.
[8]	Dauletbakov B.D. Applying the Pareto principle in the planning of agroindustrial formations. Proceedings of the conference of experts of the Commonwealth of Independent States - Alma-Ata, 1992. - p. 27 - 29.
[9]	Dauletbakov B.D. Management decision-making in agricultural production (the theory, methodology, model): Monograph. Almaty, 2005. - 425 p.
[10]	Dauletbakov D.B., Naumov A.A., Dauletbakov G.B. Methods of estimating financial performance of private business processes // Herald of the Kazakh National University. Economic Series, 2010, № 5 (81), pp 46-50.
[11]	Dauletbakov D.B., Naumov A.A., Dauletbakov G.B. Assessing the effectiveness of financial and economic systems with the use of models in the form of business processes // Herald of the National Academy of Sciences of the Republic of Kazakhstan, 2010, № 4, pp 39-43.
[12]	Dauletbakov D.B., Naumov A.A., Dauletbakov G.B. System formation and find the best portfolio of business processes // Herald of the National Academy of Sciences of the Republic of Kazakhstan, 2010, № 4, pp 44-48.
[13]	Naumov A.A., Dauletbakov B.D. Effectiveness of social projects. Proceedings of the International scientific and practical conference "Sustainable development of Kazakhstan's economy: modernization imperatives and business inzhiring." Almaty, Kazakhstan on 29-30 March 2012. KazNTU after KI Satpayev. Pp 383-388.
[14]	Podinovskii Vladislav. Pareto-optimal solutions of multiobjective problems / VV Podinovskii, VD Nogin. - Ed. 2nd, rev. and add. - M.: FIZMATLIT, 2007. - 255 p.
[15]	Larichev, O.I. Theory and methods of decision-making, and Chronicle in Magic countries : the textbook / O.I. Larichev. - 2nd ed., Rev. and add. - Moscow: Logos, 2003. - 391 p.
[16]	Ivanilov Y.P., Lotov A.V. Mathematical models of the economy. - M .: Science, 2007.
[17]	Alexey An, Bakytkan Dauletbakov, Eugene Levner. Computational Linguistics and Intelligent Text Processing Lecture Notes in Computer Science Volume 8404, 2014, pp 404-416.

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Bakytkan Dauletbakov, Galym Dauletbakov. (2015). Evaluating the Effectiveness of the Investment Project. Economics, 4(4), 57-63. https://doi.org/10.11648/j.eco.20150404.11

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Bakytkan Dauletbakov; Galym Dauletbakov. Evaluating the Effectiveness of the Investment Project. Economics. 2015, 4(4), 57-63. doi: 10.11648/j.eco.20150404.11

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Bakytkan Dauletbakov, Galym Dauletbakov. Evaluating the Effectiveness of the Investment Project. Economics. 2015;4(4):57-63. doi: 10.11648/j.eco.20150404.11

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@article{10.11648/j.eco.20150404.11,
  author = {Bakytkan Dauletbakov and Galym Dauletbakov},
  title = {Evaluating the Effectiveness of the Investment Project},
  journal = {Economics},
  volume = {4},
  number = {4},
  pages = {57-63},
  doi = {10.11648/j.eco.20150404.11},
  url = {https://doi.org/10.11648/j.eco.20150404.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20150404.11},
  abstract = {Evaluating the effectiveness of investment projects is a prerequisite for the selection of the investment portfolio generated by the investor, and based on a number of traditional criteria: NPV (Net Present Value), IRR (Internal Rate of Return), PP (Payback Period), PI (Profitability index) and NFV (Net Future Value). We propose a model of multi-criteria decision-making on the selection of a portfolio of investment projects selected in terms of their effectiveness, based on the modification of the classical NPV (Net Present Value). In particular, the features and options compared NFV (Net Future Value) - efficiency test. In this direction, we should expect interesting results from a scientific and practical point of view. Our approach to assessing the effectiveness of investment projects based on the method of selection of optimal projects taking into account the set of criteria, intended to build interactive decision-making procedures, as the possibility of using rigorous methods, and knowledge and experience of the decision maker (DM). There are various approaches to selecting the resulting unnormalized preference relations on the basis of a plurality of predetermined. The simplest of these is the approach based on the principle of Borda that we have proposed in [17]. In this article we provide a description and the main approaches to the selection criteria by which assesses the effectiveness of possible variants of the portfolio of investment projects. It uses the methodology of constructing a set of solutions based on the Pareto principle.},
 year = {2015}
}

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TY  - JOUR
T1  - Evaluating the Effectiveness of the Investment Project
AU  - Bakytkan Dauletbakov
AU  - Galym Dauletbakov
Y1  - 2015/07/15
PY  - 2015
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DO  - 10.11648/j.eco.20150404.11
T2  - Economics
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JO  - Economics
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EP  - 63
PB  - Science Publishing Group
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AB  - Evaluating the effectiveness of investment projects is a prerequisite for the selection of the investment portfolio generated by the investor, and based on a number of traditional criteria: NPV (Net Present Value), IRR (Internal Rate of Return), PP (Payback Period), PI (Profitability index) and NFV (Net Future Value). We propose a model of multi-criteria decision-making on the selection of a portfolio of investment projects selected in terms of their effectiveness, based on the modification of the classical NPV (Net Present Value). In particular, the features and options compared NFV (Net Future Value) - efficiency test. In this direction, we should expect interesting results from a scientific and practical point of view. Our approach to assessing the effectiveness of investment projects based on the method of selection of optimal projects taking into account the set of criteria, intended to build interactive decision-making procedures, as the possibility of using rigorous methods, and knowledge and experience of the decision maker (DM). There are various approaches to selecting the resulting unnormalized preference relations on the basis of a plurality of predetermined. The simplest of these is the approach based on the principle of Borda that we have proposed in [17]. In this article we provide a description and the main approaches to the selection criteria by which assesses the effectiveness of possible variants of the portfolio of investment projects. It uses the methodology of constructing a set of solutions based on the Pareto principle.
VL  - 4
IS  - 4
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Author Information

Bakytkan Dauletbakov

High School of Economics and Business Department, the Al-Farabi Kazakh National University, Almaty, Republic of Kazakhstan
Galym Dauletbakov

LLP VILED, Almaty, Republic of Kazakhstan

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APA Style

Bakytkan Dauletbakov, Galym Dauletbakov. (2015). Evaluating the Effectiveness of the Investment Project. Economics, 4(4), 57-63. https://doi.org/10.11648/j.eco.20150404.11

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ACS Style

Bakytkan Dauletbakov; Galym Dauletbakov. Evaluating the Effectiveness of the Investment Project. Economics. 2015, 4(4), 57-63. doi: 10.11648/j.eco.20150404.11

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AMA Style

Bakytkan Dauletbakov, Galym Dauletbakov. Evaluating the Effectiveness of the Investment Project. Economics. 2015;4(4):57-63. doi: 10.11648/j.eco.20150404.11

Copy | Download

@article{10.11648/j.eco.20150404.11,
  author = {Bakytkan Dauletbakov and Galym Dauletbakov},
  title = {Evaluating the Effectiveness of the Investment Project},
  journal = {Economics},
  volume = {4},
  number = {4},
  pages = {57-63},
  doi = {10.11648/j.eco.20150404.11},
  url = {https://doi.org/10.11648/j.eco.20150404.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20150404.11},
  abstract = {Evaluating the effectiveness of investment projects is a prerequisite for the selection of the investment portfolio generated by the investor, and based on a number of traditional criteria: NPV (Net Present Value), IRR (Internal Rate of Return), PP (Payback Period), PI (Profitability index) and NFV (Net Future Value). We propose a model of multi-criteria decision-making on the selection of a portfolio of investment projects selected in terms of their effectiveness, based on the modification of the classical NPV (Net Present Value). In particular, the features and options compared NFV (Net Future Value) - efficiency test. In this direction, we should expect interesting results from a scientific and practical point of view. Our approach to assessing the effectiveness of investment projects based on the method of selection of optimal projects taking into account the set of criteria, intended to build interactive decision-making procedures, as the possibility of using rigorous methods, and knowledge and experience of the decision maker (DM). There are various approaches to selecting the resulting unnormalized preference relations on the basis of a plurality of predetermined. The simplest of these is the approach based on the principle of Borda that we have proposed in [17]. In this article we provide a description and the main approaches to the selection criteria by which assesses the effectiveness of possible variants of the portfolio of investment projects. It uses the methodology of constructing a set of solutions based on the Pareto principle.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Evaluating the Effectiveness of the Investment Project
AU  - Bakytkan Dauletbakov
AU  - Galym Dauletbakov
Y1  - 2015/07/15
PY  - 2015
N1  - https://doi.org/10.11648/j.eco.20150404.11
DO  - 10.11648/j.eco.20150404.11
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 57
EP  - 63
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20150404.11
AB  - Evaluating the effectiveness of investment projects is a prerequisite for the selection of the investment portfolio generated by the investor, and based on a number of traditional criteria: NPV (Net Present Value), IRR (Internal Rate of Return), PP (Payback Period), PI (Profitability index) and NFV (Net Future Value). We propose a model of multi-criteria decision-making on the selection of a portfolio of investment projects selected in terms of their effectiveness, based on the modification of the classical NPV (Net Present Value). In particular, the features and options compared NFV (Net Future Value) - efficiency test. In this direction, we should expect interesting results from a scientific and practical point of view. Our approach to assessing the effectiveness of investment projects based on the method of selection of optimal projects taking into account the set of criteria, intended to build interactive decision-making procedures, as the possibility of using rigorous methods, and knowledge and experience of the decision maker (DM). There are various approaches to selecting the resulting unnormalized preference relations on the basis of a plurality of predetermined. The simplest of these is the approach based on the principle of Borda that we have proposed in [17]. In this article we provide a description and the main approaches to the selection criteria by which assesses the effectiveness of possible variants of the portfolio of investment projects. It uses the methodology of constructing a set of solutions based on the Pareto principle.
VL  - 4
IS  - 4
ER  -

Copy | Download