African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4193

Full Length Research Paper

Functional correlations between the efficiency indicators of investments

Branislav Marić1, Jelena Ćirić1*, Vladimir Mitrović2 and Mihailo Rovčanin3
  1Department for Industrial Engineering and Management, Faculty of Technical Sciences, University of Novi Sad, Republic of Serbia. 2Faculty of Mining and Geology, University of Belgrade, Republic of Serbia. 3Coal Mine, Pljevlja, Republic of Montenegro.
Email: [email protected]

  •  Accepted: 21 February 2011
  •  Published: 04 April 2011

Abstract

 

In the methodology for evaluating the validity of investments (without portfolio investments), recommended by the World Bank, three methods are usually used: payback period, net present value and internal rate of return. Functional correlation can be set up between these indicators and this paper presents an interdependence research, based on the five projects form of different industrial branches.

 

Key words: Investments, efficiency, net present value, payback period, internal rate of return.

Abbreviation

JEL classification: G11, G31.