THE MULTI-CRITERIA ANALYSIS METHOD AND ITS IMPORTANCE IN INVESTMENT PROJECTS

Abstract

When faced with multiple investment options, investors must select the one that aligns best with the project's objectives. To facilitate this decision, investors typically create a detailed plan outlining the investment project. Various evaluation methods are then employed to assess the project's effectiveness. However, these methods often yield conflicting results, posing challenges for investors in making informed decisions.

This article introduces a framework aimed at enhancing the investment decision-making process. It emphasizes the importance of using approaches like multi-criteria analysis to evaluate investment effectiveness. Given the potential discrepancies in evaluation outcomes, it underscores the significance of considering various criteria to make optimal investment choices. Multi-criteria analysis serves as a valuable tool for ranking potential investment ventures and improving decision-making processes essential for achieving investment objectives.