Application of Vikor Method in Ranking the Investment Projects
Application of Vikor Method in Ranking the Investment Projects

Summary/Abstract: Investments represent one of the most significant activities in an enterprise. Investing in capital implies the immediate expense for an enterprise with the expected future benefits. These benefits usually last for more than one year. The examples, of such investments are investments in possessions like equipment, buildings and land, as well as introduction of new products, new distribution system or new research and development programme. Enterprises and other project implementers usually face the issue of choosing between different projects which can have various effects in the future. Future success and profitability of an enterprise depend on long-term decisions which are made instantly. This paper presents the way of evaluating the investment projects and comparing the alternative projects based on the dynamic indicators of financial evaluation, by using the compromise ranking method, i.e. multi criteria analysis. It is necessary to find the best and most efficient project by using the Vikor method, as most suitable for the presented issue.

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