MAIN METHODS OF FINANCIAL AND ECONOMIC EVALUATION OF INVESTMENT PROJECTS
Abstract
This paper outlines the main methods for evaluating investment projects, discussing their essence and practical relevance. Key evaluation indicators used in making investment decisions—such as Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), and Discounted Payback Period (DPP)—are analyzed. The advantages and limitations of these evaluation methods, their application in real-life projects, and mechanisms for incorporating risk are also examined.
Keywords
investment project, evaluation methods, NPV, IRR, PI, payback period, economic efficiency, investment decision, risk, analysis.
References
- Speech by the President of the Republic of Uzbekistan at the video conference meeting dedicated to the organization of activities based on the newly introduced procedure for the formation and financing of the State Program for the Development of the Republic of Uzbekistan, January 17, 2018.
- UNIDO (United Nations Industrial Development Organization) – United Nations agency for industrial development.
- Burkhanov A.U., Muminov Sh.Kh., Khudoyqulov Kh.Kh. Investments and Innovations. Educational manual.
- Mahmudov N.M., Madjidov Sh.A. Organization and Financing of Investments. Educational manual. – Tashkent: TDIU, 2010. – p. 86.
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