A NEW SIMPLIFIED DECISION MAKING SYSTEM FOR SMALL PROJECTS
Making decisions on funding or not funding projects is the most difficult process in management, especially for the state services that have a limited budget. The aim of this study is to establish a new simplified system for evaluating small projects based on translating all values into economic terms. The new system tries to simplify the Cost-Benefit Analysis (on which it is based) to the bare minimum and still keep a high degree of relevance to the decision-making process. The conclusions were somewhat remarkable, mostly because the system gives accurate and relevant data for comparing projects despite its simplicity. The other big benefit of this system is its simple nature and ease of understanding even for people with no economic studies.
The applied part of this paper involves an analysis of real projects in Brasov County – Romania and the results of applying Cost-Benefit Analysis and the new method for evaluating projects.
The paper concludes proposing a new, modern and simple system for improving decision making on small projects.
Belli, P. A. (2001). Economic Analysis of Investment Operations. Analytical Tools and Practical Applications. Washington D.C.: WBI, World Bank.
Boardman A. E., G. D. (2001). Cost-Benefit Analysis concepts and practice 2nd Edition. Upper Saddle River, New Jersey: Pearson Education Prentice Hall.
Boardman A. E., G. D. (2006). Cost-Benefit Analysis: concept and practice 4th Edition. Upper Saddle River, New Jersey: Pearson Prentice Hall.
Dinwiddy C. L., T. J. (1996). Principles of Cost-Benefits Analysis for Developing Countries. Cambridge (UK): Cambridge University Press.
Drèze J., S. N. (1987).The Theory of Cost-Benefit Analysis, in Auerbach. Amsterdam: Handbook of Public Economics, vol.. 2.
Florio M., M. S. (2008). Guide to Cost Benefit Analysis of Investment Projects. Evaluation Unit, DG Regional Policy, European Commission.
Pearce, D. A. (2006). Cost-Benefit Analysis and Environment: Recent Developments. Paris: OECD.
The Agency for Financing Rural Investment. (2017, 03 8). Taken from www.afir.info: http://www.afir.info/
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (Creative Commons Attribution License 3.0 - CC BY 3.0) that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
firstname.lastname@example.org, www.iseic.cz, ojs.journals.cz