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Evaluation of Investment Risks in Cba with Monte Carlo Method
| Content Provider | Semantic Scholar |
|---|---|
| Author | Korytárová, Jana Pospíšilová, Barbora |
| Copyright Year | 2015 |
| Abstract | KORYTÁROVÁ JANA, POSPÍŠILOVÁ BARBORA. 2015. Evaluation of Investment Risks in CBA with Monte Carlo Method. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 63(1): 245–251. Investment decisions are at the core of any development strategy. Economic growth and welfare depend on productive capital, infrastructure, human capital, knowledge, total factor productivity and the quality of institutions. Decision-making process on the selection of suitable projects in the public sector is in some aspects more diffi cult than in the private sector. Evaluating projects on the basis of their fi nancial profi tability, where the basic parameter is the value of the potential profi t, can be misleading in these cases. One of the basic objectives of the allocation of public resources is respecting of the 3E principle (Economy, Eff ectiveness, Effi ciency) in their whole life cycle. The life cycle of the investment projects consists of four main phases. The fi rst pre-investment phase is very important for decision-making process whether to accept or reject a public project for its realization. A well-designed feasibility study as well as cost-benefi t analysis (CBA) in this phase are important assumptions for future success of the project. A future fi nancial and economical CF which represent the fundamental basis for calculation of economic eff ectiveness indicators are formed and modelled in these documents. This paper deals with the possibility to calculate the fi nancial and economic effi ciency of the public investment projects more accurately by simulation methods used. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://acta.mendelu.cz/media/pdf/actaun_2015063010245.pdf |
| Language | English |
| Access Restriction | Open |
| Subject Keyword | Decision Making Effi Mice, Inbred CBA Monte Carlo method Population Parameter Simulation |
| Content Type | Text |
| Resource Type | Article |