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Project Investment Decision-Making


  • Domen Zavrl

    (University of Primorska, Koper, Slovenija)


Project evaluation is the control of the planning and implementation of project activities with regard to the objectives to be achieved. In this paper we assume the objective to be efficient outcome and profit maximization. This means that project evaluation puts normative assessments into the context of planning and management and hence into the context of intentional action and cycles of action. The model for project evaluation we propose has two money holders who must decide how to invest their money in two investment funds (financial intermediaries) that, in turn, will use the money to bid to acquire ownership in two projects. The general case when the number of money holders, the number of funds, and the number of investments are arbitrary may be handled in a similar manner to the development below, but at a cost of greater complexity. As a result no mechanism to achieve the maximum outcome is present and different methods to find optimal structure under uncertainty and different cost structures are discussed.

Suggested Citation

  • Domen Zavrl, 2007. "Project Investment Decision-Making," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 10(2), pages 95-105, November.
  • Handle: RePEc:zag:zirebs:v:10:y:2007:i:2:p:95-105

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    References listed on IDEAS

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