A Comprehensive Methodology for Investment Project Assessment Based on Monte Carlo Simulation
Source abstract
Abstract
This article presents a methodology for assessing investment projects representing the sequence of steps necessary for a comprehensive assessment and optimization of an investment project. The assessment process starts with the quantitative forecasting of stochastic input factors, with the selection of risk factors and the definition of their uncertainty. That is followed by the design of a mathematical model for calculating the criterion of economic efficiency of investment, its calculation mathematically, and forecasting by Monte Carlo simulation. The simulation output is assessed from the point of view of risk, and in case of an unacceptable result, the possibilities for project optimization are proposed. Finally, the proposed methodology was applied to an investment project model, where individual principles are practically demonstrated.
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Research context
OpenAlex topics: Operations Management Techniques · Capital Investment and Risk Analysis · Urban Transport Systems Analysis
SciVX discovery tags are terminology-based. OpenAlex topics are source-provided classifications.
Affiliations
Institute of Logistics and Transport, Faculty of Mining, Ecology, Process Control and Geotechnology, Technical University of Kosice, Letná 9, 042 00 Košice, Slovakia
Institute of Industrial Engineering, Management, Environmental Engineering and Applied Mathematics, Faculty of Mechanical Engineering, Technical University of Košice, Park Komenského 5, 040 02 Košice, Slovakia
Institute of Manufacturing and Process Engineering, Faculty of Manufacturing Technologies with the Seat in Prešov, Bayerova 1, 080 01 Prešov, Slovakia
Funding
VEGA · KEGA · APVV
References (31)
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