The Virtues of Using Profitabilitymetric for Projectsselection

Thanakornn Phansawadhi

Abstract


One of most important decisions that any organization would have to make is concerned the potential projects and assets selection. These decision-makings also being based primarily on the degree to which are joined the financial goals of the organization. Numerous common studies on project success and failure reported that the evaluation model correctly predicted almost 80 percent of the project failures and almost 75 percent of the project success. Thus selecting a project using the right technique is ultimate importance for the survival of firms and the achievement of projects. Financial numbers-based existing numeric models have some arguments cited by empirical literatures, but their advantages are many. Therefore, this literature aims to propose and describe the profitability functional method provided as a cumulative value-added metric that is widely appropriate for measuring the prospective wealth of firms, stocks, independent projects, earnable programs, and financial assets. This paper will discuss how to estimate the future worth of potential projects and assets in the dimension of profitability metric.


Full Text: PDF DOI: 10.5539/emr.v1n1p92

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Engineering Management Research   ISSN 1927-7318 (Print)   ISSN 1927-7326 (Online)

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