This paper shows that the notion of rate of return is best understood through the lens of the average-internal-rate-of-return (AIRR) model, first introduced in Magni (2010a). It is an NPV-consistent approach based on a coherent definition of rate of return and on the notion of Chisini mean, it...

Under the circumstances of certain weaknesses in the monitoring and evaluation processes of sustainable investment projects, the paper aims to develop a general integrated flow, encompassing both a project monitoring system and also a project evaluation system for the investment projects...

Financial instruments are efficient – in terms of resource – mobilization of cohesion policy resources to achieve the objectives of the strategy. Rules of forming the investment strategy, particularly in State structures, by using the budget funds of the Republic of Moldova, must include as...

This paper uses real options theory to value an investment opportunity known as the Mediterranean-Dead Sea hydroelectric project. We employ a discrete time model to:-quantify simultaneous variation of three decision variables over the useful life of the project;-value options to: postpone the...

For investing in profitable ventures, the firms intend to recover the investment made in them. Thus, the determination of the respective cost of capital of a venture can provide a base for making decisions on whether to accept the project profitably. In this context, this paper provides some...

The cash flow estimation is important to evaluate projects in view of adding values to the owners’ equity of a firm. Cash flow estimation is a primary requirement for capital budgeting and using project evaluation techniques. Hence, this paper provides cash flow estimation methods from an...

As the objective of the capital budgeting is to add values to the wealth of an owner of a business, the capital budgeting primarily insists the recovery of investments made in the projects. To improve the owner’s wealth, it is important to evaluate and identify profitable projects using some...

Investment in infrastructure assets represents allocation of financial resources to long-lived, physical assets. Managing risk to maximize returns and minimize unforeseen negative outcomes is key to increasing investor confidence and the attractiveness of investing in infrastructure. The nature...