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Evaluation of investment projects under uncertainty: multi-criteria approach using interval data

Author

Listed:
  • Olga A. Shvetsova

    (Korea University of Technology and Education)

  • Elena A. Rodionova

    (SPbPU - Peter the Great St. Petersburg Polytechnic University)

  • Michael Z. Epstein

    (SPbPU - Peter the Great St. Petersburg Polytechnic University)

Abstract

Multi-criteria decision making (MCDM) methods have evolved for various types of applications. In the past, even small variations to existing methods have led to the creation of new avenues for research. Thus, in this study, we review the MCDM methods in investment management and examine the advantages and disadvantages of these methods in a risk environment. In addition, we study the effectiveness of investment projects using these methods. The analysis of MCDM methods performed in this study provides a guide for the use of these methods, especially the ones based on interval data, in investment project analysis. Furthermore, we propose a combination of multi-criterial selection and interval preferences to evaluate investment projects. Our method improves on the method of calculating economic efficiency based on a one-dimensional criterion and sensitivity analysis, though our proposal involves complicated calculations.

Suggested Citation

  • Olga A. Shvetsova & Elena A. Rodionova & Michael Z. Epstein, 2018. "Evaluation of investment projects under uncertainty: multi-criteria approach using interval data," Post-Print hal-01858557, HAL.
    • Handle: RePEc:hal:journl:hal-01858557
    DOI: 10.9770/jesi.2018.5.4(15)
    Note: View the original document on HAL open archive server: https://hal.science/hal-01858557
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    References listed on IDEAS

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    Cited by:

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    2. Paul Weigel & Manfred Fischedick & Peter Viebahn, 2021. "Holistic Evaluation of Digital Applications in the Energy Sector—Evaluation Framework Development and Application to the Use Case Smart Meter Roll-Out," Sustainability, MDPI, vol. 13(12), pages 1-31, June.
    3. Olga Shestak & Oleg L. Shcheka & Yury Klochkov, 0. "Methodological aspects of use of countries experience in determining the directions of the strategic development of the Russian Federation arctic regions," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 0, pages 1-19.
    4. Yury S. Klochkov & Andrei M. Tveryakov, 2020. "Approaches to the improvement of quality management methods," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 11(2), pages 163-172, July.
    5. Galimkair Mutanov & Sayabek Ziyadin & Aijaz Shaikh, 2019. "Graphic model for evaluating the competitiveness and eco-efficiency of eco-innovative projects," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 2136-2158, June.

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    Keywords

    investment project; interval data; investment project evaluation; Pareto set; risk management; multicriterial approach;
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