Abstract:

The paper is situated in the area of financial management and has the aim to apply the criteria’s NVP, IRR, PI and RP for the effective selection of direct investments.
In the first part of the paper are presented the theoretical notions about investment.
In the second part of the paper  are presented the case study which include the sizing of the investment, identification of incomes and their projection, identification of costs and their description, cash-flow and identification of financial sources. Also are calculated financial indicators net present value (NPV), the internal rate of return (IRR), profitability index (IP) and recovery period (RP).
The paper ends with conclusions and observations looking the substantiation of investment decision in the project under review.