EXPLANATION OF THE BENEFIT OF THE INVESTMENT PROJECT ON THE CASH BASIS

Autori članka: 
Dijana Kremenović
Godina izdavanja članka: 
2018
Broj u godini: 
2
Apstrak članka: 

EXPLANATION OF THE BENEFIT OF THE INVESTMENT PROJECT ON THE CASH BASIS

Abstract: Decisions about the choice of investment projects can significantly affect the destiny of the company, its competitive position in the market, market participation, the direction of further technological development, and even the survival of the company. The aim of this paper is, in the conditions of the current economic reality, to point out the significance of the choice of methods of expressing the benefit of an investment project. In this sense, we have explained in detail all currently applicable methods for assessing the viability of investment projects on a cash basis, comparing the good and bad sides of all the methods presented. In this connection, we especially pointed out the importance of the time value of money. The decision to apply the capital budgeting process, certainly, is the decision of the company itself. However, the outcome of investment activity is borne by a wider circle of consumers, which should be a sufficient reason to encourage education and the application of current methods in this area. If you want to realistically look at the investment process and evaluate the justification of an investment project, it is necessary to identify and analyse the effects of exploitation of a particular investment. In order to ensure the realization of the company’s basic strategic goals and thus ensure its growth and development, it is necessary to make decisions in which the company will focus its investment activities on this investment projects whose effects will ensure the highest return on investment. This work deals with the complex issues of making adequate investment decisions using a method for assessing the viability of investment projects on a cash basis. Bearing in mind the significance of investment activity, we can conclude that for the purpose of making a good investment decision, it is necessary to realistically look at the entire investment process and assess the justification of the implementation of the investment project. In this sense, we identify, measure and quantify the overall effects of the realization of a particular investment. Capital budgeting for the purpose of making an investment decision today is a generally accepted concept in developed economies. There is no doubt that there are many disagreements regarding the choice of the methods of assessing the viability of investment investments, and then the selection of criteria within a certain method. However, it is quite certain that the rich experience of developed countries undoubtedly points to the need for capital budgeting, investment project management, with particular emphasis on the use of discounted methods for assessing the viability of investment investment and respecting both economic and non-economic effects. Implicit benefits that the application of capital budgeting brings to the overall growth and development of the company, in terms of reducing uncertainty in making investment decisions, easier ranking of investment projects, exact measurement of expected benefits, transparency of investment activity criteria, attracting investors and ultimately creating additional value and greater degree of realization of strategic company goals. With this work, we pointed out the fact that capital budgeting is crucial in the process of making an investment decision and in that way has influenced enterprises to seriously deal with the choice of the method of estimating the profitability of investment projects that will surely result in additional value for the company.

Keywords: Corporate Finance, Investment, Productivity, Growth, Capital Budgeting.
 
 
IZRAŽAVANJE KORISTI INVESTICIONOG PROJEKTA NA GOTOVINSKOJ OSNOVI
 
Rezime: Ukoliko se želi realno sagledati proces investiranja i ocijeniti opravdanost investicionog projekta, neophodno je, s aspekta preduzeća ali i šire društvene zajednice, identifikovati i analizirati efekte eksploatacije određene investicije. Ovim radom tretiraće se složena problematika donošenja adekvatnih investicionih odluka izražavajući korist investicionog projekta na gotovinskoj osnovi. Da bi se obezbijedila realizacija osnovnih strateških ciljeva preduzeća i time osigurao njegov rast i razvoj, neophodno je donijeti odluke kojima će preduzeće svoje investicione aktivnosti usmjeriti na investicione projekte čiji će efekti obezbijediti najveću rentabilnost ulaganja. S obzirom na složenost investicionih aktivnosti, materijalni značaj, vremensku distancu, ograničenost resursa, rizike i neizvjesnosti te ostale faktore uticaja, nameće se potreba upravljanja investicionim projektima. Cilj ovog rada je da, analizirajući faze budžetiranja i metode koje se u tom procesu koriste za ocjenu rentabilnosti investicionih ulaganja, ukaže na značaj ovog procesa kao presudnog faktora u donošenju investicionih odluka. 
 
Ključne riječi: korporativne finansije, investicije, produktivnost, rast, planiranje investicija.