Modern methods for calculating the economic activities of investment projects

Abstract

Evaluating the investment project, it is necessary to precisely consider many different factors allowing to make right decision about the ex pediency of investing in it, comparing to alternative offers. One of the most important economic valuation of investment project is discounted payback period of made investments which doesn’t consider cash flows after the end of payback period. The purpose of this work is to demonstrate the method of calculating traditional temporal investment project index for make informed investment decisions. The calculations were made with Excel Solver add-in, and this result suggests the possibility of practical application of the methods in making optimal investment decisions.