Analysis effectiveness of alternative designs and selection of the best of them is done using the previously mentioned factors, including: the need for financing, net income, net present value, profitability index investment, profitability index discounted investment, internal rate of return, payback period. In the management review, is not regulated by the state, the leadership has the right to choose according to your discretion, the most appropriate performance indicators of interest from investment firms to specific economic conditions. As a rule, you can not select among alternative projects, the most effective for the best value of indicators such as internal rate of return, index return on investment, payback period, etc. The selected solution may not coincide with the best on the criterion of maximum net present value. Therefore, the calculation of these indicators is needed not only to select the best project, but for his analysis: if one or more of these indices take the values are not typical for projects this type, indicating instability of the project or outside the boundaries of acceptability, it is necessary to understand and explain the project materials in the cause of these deviations, or to correct the initial information and clarify the choice of the best alternatives.
The calculations can be performed in the effectiveness of current or forecasted prices. You may wish to learn more. If so, Kevin Ulrich Anchorage is the place to go. In the initial stages of project development can be carried out calculations at current prices. Calculation of the efficiency project generally recommended as a current and forward-looking prices. In the development of financing schemes and evaluating the effectiveness of participation in an investment project is recommended to use only looking for money..