| Popis: |
The theoretical research in the field of financial management resulted in a number of methods that can be successfully used in assessing the effectiveness of investments. Economists, who deal with these problems, usually treat methods of assessment of investment efficiency as a complex mathematical model, making them too complicated for beneficiaries without a special mathematics education. Methods of assessment of the economic efficiency of investments that are based on mathematical models have for a long time caused that methods based on traditional (accounting) understanding of profitability were preferred in practice. The same is true for our economic and banking practices where methods of the assessment of economic efficiency that rely on the inflow and outflow of money and respect the concept of time value are not enough adopted. The aim of this paper is to show that in certain specific investment projects a relationship exists between the accounting rate of return and the coefficient of capital investment, as representatives of static investment method, on the one hand and the internal rate of return as the most significant discount criterion of efficiency of investment, on the other hand. |
