Sustainable Investment Project Evaluation

Abstract

This paper concerns a current problem of multifaceted evaluation of investment projects. Information that contains the actual value of the initiated investment is often the basis for making decisions regarding its further implementation, especially when significant changes occur in the project's environment. The process of project evaluation should therefore include all factors that may affect its value. However, there is a research gap regarding the insufficient development of methods of commercial real estate investment evaluation that integrate quantitative (financial) approaches and qualitative factors that influence the value of project, and also refer to the achievements in the scope of project management. The purpose of this paper is to introduce the integrated method of investment project evaluation based on the common valuation method (an income approach), supplemented by the results of the implementation of the Real Options Method (ROM) and complemented by the project sustainability factor. Case studies were carried out to prove that an exit option (resignation) can support the ongoing evaluation of the investment. Individual in-depth interviews (IDI) were conducted to examine the sustainability impact on its value. Three case studies involving commercial properties have verified the possibility of applying the proposed integrated method. The following findings were discovered as a result: nowadays, in the turbulent project environment, the common investment project valuation methods need to be extended to support the managerial decision regarding their further implementation and the securing of their flexibility. Also, sustainability has been recognized as a factor that increases the project value, which should be taken into account during the evaluation process. A comparative analysis indicates that the accuracy of the proposed new method delivers a more precise determination of the investment value than the common valuation methods.

A Comprehensive Methodology for Investment Project Assessment Based on Monte Carlo Simulation

“…The economic efficiency of the investment project is assessed using the NPV financial criterion, the value of which is calculated according to the relationship (1). The prediction of annual CF from an operational activity is determined according to relationship (2):…”

“…The profitability of investment projects is affected by many factors. Therefore, the project evaluation process should incorporate all factors that possibly influence its value [1,2]. Financial investments are one of the ways in which a company can invest its finances.…”

Sustainability of Residential Investment in Klang Valley, Malaysia

“…This may result in the failure of ensuring the return as well as the long-term sustainability of any particular investment. To make the income sustainable, the importance of a long-term investment with substantial outlays which comes together with high investment risk must also be emphasised (Grzeszczyk & Waszkiewicz, 2020).…”

Methodological foundations of assessing research impact in business and management

“…Due to the fact that the notions of public value of research and its impact are most often not treated as equivalent to traditionally understood research quality, it is necessary to use separate methodological approaches, methods and evaluation criteria. The research impact assessment criteria are more multifaceted, to some extent similar to those used in the context of responsible development and sustainable evaluation (Grzeszczyk & Waszkiewicz, 2020), and they definitely relate to the assessment of long-term outcomes identified outside the scientific community. The value of indicators and impact assessment criteria can be analyzed at various levels (scientific, social and political), and the conducted research may generate significant changes among the general public and, secondly, in science (Reale et al, 2018).…”