Abstract

The paper presents the experimental research of mutual dependence between two methods of description of investment profitability: the investment's payback period and the internal rate of return based on the samples of investment programs realized in the economy of the Autonomous Province of Vojvodina, which represents economically the most developed area of Republic of Serbia, from 2003 to 2008. Working on investment project design in different industrial areas, the authors collected a sample of 23 projects, monitoring the mutual dependences between individual parameters, that is, methods of deciding the investments' profitability. The authors found explicit dependence which has been presented in this paper.

Key words: Investments, profitability, payback period, internal rate of return.