Economic Evaluation

*Note : I am going to add my Corporate Strategy Assigment when i was at the university about Financial Investment Methods. Enjoy it :)

PART -2

1.   ECONOMIC EVALUATION

Aims to maximize social welfare, the shadow prices corrected by social aspects are used. Shadow prices used in economic analysis are corrected to include the effects of the savings and investments on the projects.

Economic analysis is purposed to economic activity by receiving data to provide income distribution and seek to maximize the income.

However, social analysis is targeted to maximize social welfare and the assumption that project benefits are harvested from the consumption of manufactured goods or services value to different individuals or in terms of different income groups.

Evaluation of Investment Proposals

*Note : I am going to add my Corporate Strategy Assigment when i was at the university about Financial Investment Methods. Enjoy it :)

PART -1 

FINANCIAL INVESTMENT METHODS

    1.   EVALUATION OF INVESTMENT PROPOSALS

Evaluation of investment proposals is a kind of act of project preparation phase after review process. It is possible to be made a good choice by comparing the business objectives of one project or few projects.

Valuation of an investment proposal should be made finacially in order to determine the level of profitability and the degree of economic aspects.

Business must evaluate the projects to make a choice between alternative uses of resources and to consider resources for investment in purpose - built to be able to give the best results. In practice, business use different methods while they are choosing investment projects.

We can gather these used methods in two main groups, even though they have different features and much more numerous. In order to investors, investment projects are generally accepted as the order of two basic classes that static methods and dynamic methods.

• Economic Evaluation
• Commercial Profitability Analysis
• Social Profitability Analysis
• Financial Review
• Static Methods
• Dynamic Methods