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

Olga A. Shvetsova (), Elena A. Rodionova () and Michael Z. Epstein ()
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Olga A. Shvetsova: Korea University of Technology and Education, Korea, Republic of
Elena A. Rodionova: Peter the Great St. Petersburg Polytechnic University, Russian Federation
Michael Z. Epstein: Saint Petersburg State University of Economics, Russian Federation

Entrepreneurship and Sustainability Issues, 2018, vol. 5, issue 4, 914-928

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.

Keywords: multicriterial approach; risk management; Pareto set; investment project; interval data; investment project evaluation (search for similar items in EconPapers)
JEL-codes: M21 O16 O22 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:5:y:2018:i:4:p:914-928

DOI: 10.9770/jesi.2018.5.4(15)

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