APPLICATION OF MULTIPLE CRITERIA METHOD OF ANALYTIC HIERARCHY PROCESS AND SENSITIVITY ANALYSIS IN FINANCIAL SERVICES IN THE CZECH REPUBLIC
APPLICATION OF MULTIPLE CRITERIA METHOD OF ANALYTIC HIERARCHY PROCESS AND SENSITIVITY ANALYSIS IN FINANCIAL SERVICES IN THE CZECH REPUBLIC

Summary/Abstract: The paper presents multiple criteria decision making, namely analytic hierarchy process, application of criteria weights sensitivity analysis, eliciting change of the order of variants. Assessments are focused on financial products (total 132 of financial leasing and loans alternatives) using four financial and four non-financial criteria. The aim of this paper is to consider a set of alternatives of financial products (financial leasing and bank loan) by the method of AHP and a weighted sum followed by selection of the optimal alternative and implement a sensitivity analysis. By applying these methods, it was found that the most appropriate type of financing is bank loan borrowed with a maximum amount equal to the market price. Sensitivity analysis showed that the most sensitive criteria have the smallest degree of significance.

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