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A Build-Up Algorithm For Sustainable Discount Rates Projections

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  • R?zvan C?t?lin DOBREA
  • Felicia Alina DINU

Abstract

In the context of the sustainable development the investment efficiency and optimum receive new dimensions characterized by an increased complexity, which makes the quantification of a forecasted risk level more difficult, a level based on which a correct substantiation and evaluation might be realized that should denote the decision generating a maximum performance level. The key element of the efficiency indicators’ correct planning and quantification is the discount rate. The respecting of the reporting tendencies to multiple dimensions highlighted the quantification need of new investment risk factors. Our article proposes a model for calculating the discount rate of the investment projects. The algorithm is composed out of 6 variables that surprise both classical influence factors and the interest rate or the inflation rate, but also innovating aspects that underline the implementation’s sustainability degree of an investment objective in a certain country of the European Union.

Suggested Citation

  • R?zvan C?t?lin DOBREA & Felicia Alina DINU, 2014. "A Build-Up Algorithm For Sustainable Discount Rates Projections," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(1), pages 1181-1191, November.
    • Handle: RePEc:rom:mancon:v:8:y:2014:i:1:p:1181-1191
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    References listed on IDEAS

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