The Complementarities of Criteria and the Selection of Investment Projects
The Complementarities of Criteria and the Selection of Investment Projects

Summary/Abstract: The investment policy has to be based on universally acknowledged and accepted project selection criterion. A decision regarding the pertinence of a particular investment or regarding the choice among several projects, can not be based on a single criterion of efficiency, but on a sum of complementary criterion that are considered representative. Presenting these criteria shows that the discount rate, the net present value, the internal ratability and the rate of return, can lead to choosing one of several investment options. In the valuation of investment projects practice, the calculation of these indexes can often lead to discrepant results and thus making it more difficult to analyze and choose the more efficient project or project variation. The authors’ goal in this paper is to summarize the results of the research conducted in order to limit the deficiencies that the above mentioned criteria present.

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