Valuation of an investment project is an objective, scientific and comprehensive research and analysis of all economic and technical contents of a project, placed in relation to the natural and socio-economic environment to decide on investment and funding for the project.
This is a process of checking and evaluating the basic contents of the project independently, separate from the drafting process of the project. Valuation of projects creates a solid basis for effective investment activities. The conclusions drawn from the valuation process are the basis for units, establishments and competent state agencies to make investment decisions, permission of investment or funding.
1. GENERAL INTRODUCTION
1.1 / What is an investment project?
Investment project is a document prepared by the investor, which presents in a very complete and detailed manner all contents related to the subsequent investment in order to affirm the correctness of the investment policy and the effectiveness of capital. Investment project is a document that faithfully reflects the results of specific research on all issues of market, economy, technology, finance, etc. that directly affect the operation, exploitation and calculation. returns of investment.
1.2 / What is valuation of investment projects?
Valuation of an investment project is an objective, scientific and comprehensive research and analysis of all economic and technical contents of a project, placed in relation to the natural and socio-economic environment so that decide to investand fund the project.
This is a process of checking and evaluating the basic contents of the project independently, separate from the drafting process of the project. Valuation provides a solid basis for effective investment. The conclusions drawn from the price appraisal process are the basis for units, establishments and competent state agencies to make investment decisions, permission of investment or funding.
2. PURPOSE OF VALUATION
A project will succeed if its features are properly recognized and evaluated by project managers. Therefore, the valuation of investment projects is very meaningful in businesses.
Helping investors select the best investment method;
Help state management agencies evaluate the suitability of the project for the general development planning of the industry and the country on the objectives, scale and efficiency;
Identify the positive and negative sides of the project;
Help donors decide whether or not to fund the project;
Clearly define the legal status of the parties involved in the investment.