EVALUATION OF GOODS IN ASSESSMENT OF SOCIAL JUSTIFICATION OF INVESTMENT PROJECTS

Abstract

The effects of an investment, depending on
their type and size, may manifest differently on
the economy, which is why it is necessary to
examine various aspects of their evaluation.
Starting from the fact that the market cannot
always and at all times and circumstances
properly evaluate all the goods and services
from the society viewpoint, commercial justification
may greatly differ from social justification.
The main starting point in the process
is the application of billing prices instead of
market prices, i.e. consideration of opportunity
costs and benefits of investment projects,
as they are an integral part of the investment
and are not applied in the best alternative use.
Starting from the shortcomings of conventional
financial analyses in the identification and
evaluation of the effects of investment projects
from a social aspect, it is necessary to promote
increasingly popular and relevant approaches.