The evaluation of investment attractiveness of the project using the generalized indicator and reducing the degree of subjectivity

Management of innovations and investments

In general, investment decision is an evaluation of the proposed alternatives for the investor using a set of indicators. It seems to be appropriate to use a method of the potential distribution of probabilities when investors know only the data of relevant characteristics of the investment projects. The application of the method is presented and it is shown that the quantitative estimates calculated by this method are relative and strongly depend on the choice of the base project.