Base Criteria Used in the Evaluation of Investment Projects

Investment projects have as purpose the satisfaction of some necessities or whishes of the management of a company. When it is taken a decision regarding investments it is known the fact that these assume the consumption of human, financial and material resources. Thus, the decision factors take into consideration a series of aspects as: the identification of the objectives of the investment, the establishment of strategies, the mobilization, use and control of the resources involved in the realization of the investment, etc.. From this point of view it is analyzed carefully the following evaluation criteria of an investment: the net present value, the internal rate of return, the recovery period and the profitability index. The aim of this article is that of highlighting the fact that the investment decisions are the most important at the company level in what regards the creation of value.