About informational utility of investment project expertise

AUTHOR(S):

Danko E.V., Oskorbin N.M., Ternovoy O.S.

TITLE

About informational utility of investment project expertise

ABSTRACT

In the context of this article the effectiveness of an investment project is evaluated by net present value, this index is considered a random variable which can be estimated by an investor as a segment. Main difficulties in decision-making process arise when this segment includes zero value. In order to reduce the rate of uncertainty an investor can decide to carry out an expertise. And so the main features of utility evaluation of an investment expertise are explained in the article

KEYWORDS

solution utility; risk aversion; loss of profit perception; utility function; efficiency evaluation of investment.

REFERENCES

[1] Bather J. Decision Theory: an introduction to dynamic programming and sequential decisions // John Wiley and Sons. – 2000.

[2] Bernstein P. L. Against the Gods: The Remarkable Story of Risk // John Wiley and Sons. – 1996.

[3] Dan'ko E.V. Funkcija sub#ektivnoj poleznosti investicionnyh reshenij v uslovijah informacionnoj neopredelennosti i metod ocenki ee parametrov

[The subjective utility function of investment decisions and method evaluating its parameters] // Vestn. Novosib. gos. un-ta. Ser.: Informacionnye tehnologii. – 2015. – T. 13, vyp. 3. – S. 24–32. (rus)

[4] Dan'ko E. V. Issledovanie poleznostey prinyatiya i otkloneniya investitsionnykh proektov
[Research on the utility of realization and rejection of investment projects] // Sbornik nauchnykh statey mezhdunarodnoy molodezhnoy shkoly-seminara «Lomonosovskie chteniya na Altae», Barnaul, 5-8 noyabrya, 2013 : v 6 ch. Barnaul : Izd-vo Alt. un-ta, 2013. Ch.I. S. 193-196. (rus).

[5] Cooper R. Microeconomics: Theory Through Applications / R. Cooper, A. John // The Saylor Foundation. – 2011.

Cite this paper

Danko E.V., Oskorbin N.M., Ternovoy O.S.. (2017) About informational utility of investment project expertise. International Journal of Mathematical and Computational Methods, 2, 337-340