Simulation Models for the Evaluation of Investment Projects

Authors

  • Pelayo Delgado Tello Private University of Tacna, Tacna

DOI:

https://doi.org/10.22451/3002.nbr2019.vol5.2.10041

Keywords:

simulation, mathematical expectation, performance, net pre sent value, returnon investmen

Abstract

The simulation model is a useful assessment tool to analyze in depth evaluation of investment projects, improving investor decision making. Contributes to investigate new project ideas and help identify investment opportunities aimed at the reformulation of projects, adapting to the attitudes and investor requirements.

An alternative choice is the mathematics expectation that is used in the calculation of probabilities that an event occurs.

The fact that a good estimate of the elements involved in the calculation of profitability is not conducted, can lead to invalidate the analysis, and therefore, can lead to approve unprofitable projects and vice versa.

When is known the probability of an event occurring certain number of years, usually applies a certain percentage during that period. For example, if the probability of an event occurring is 20 years, a rate of 5% per annum will apply.

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Author Biography

Pelayo Delgado Tello, Private University of Tacna, Tacna

1.Grado Académico de Bachiller en Estadística - Universidad Nacional de Trujillo 2. Título Profesional de Lic. en Estadística – Universidad Nacional de Trujillo 3. Grado Académico de Magíster en Estadística – Universidad de Antofagasta - Chile 4. Grado Académico de Doctor en Economía - Universidad Inca Garcilaso de la Vega Lima 5. Título Profesional de Segunda especialización en “Formulación y Evaluación de Proyectos de Inversión” - Universidad Nacional de Ingeniería –Lima. 6. Título Profesional de Máster en Estadística otorgado por la Universidad de Antofagasta- Chile en convenio con el Centro Interamericano de Enseñanza en Estadística (CIENES) auspiciado por la organización de Estados Americanos (OEA)

Published

2019-12-30

How to Cite

Delgado Tello, P. (2019). Simulation Models for the Evaluation of Investment Projects. Newman Business Review, 5(2), 97–107. https://doi.org/10.22451/3002.nbr2019.vol5.2.10041

Issue

Section

Economics, Management and business Papers