Assessment Methods for Development Projects in EU's Preaccess Programme
Proceedings of 7th International Conference «Economic Integration, Competition and Cooperation», 2-3 April, 2009, Opatija, University of Rijeka – Faculty of Economics, CD with Full papers
11 Pages Posted: 19 Mar 2013 Last revised: 22 May 2013
Date Written: April 2, 2009
Regional problems of the European Union are economical inequalities between regions which are being solved with financing of development projects. Agriculture should be fitted into that concept, so it would become more noticeable in the budget of the EU. The challenge for the Republic of Croatia and its regions is to find its place in such conditions and exploit the possible opportunities. We ask the question on which criteria will a development project be selected in the competition for financial funds assignation. All of the criteria that a project has to satisfy are defined by financing programmes. In this paper, we will evaluate projects which satisfy all of the criteria, and the choice of the best development projects depends on the possibility to accomplish future financial results. The objective of this paper is to give special attention to criteria of recovering the invested capital in the agricultural production with ignoring other criteria being that they don't influence the results of research.
The purpose of this paper is showing the objective of using methods of planning the financing development projects which are candidating at the competitions for assignation of financial funds. The project's idea has to have a strong foundation which needs to be built during its elaboration. In that purpose it is possible to use methods of planning the financing of the long-term projects, namely: the period of investment return, the accounting rate of return, method of net present value and index of profitability. In this paper, nine development projects in the agricultural field, which compete for the financial funds, according to pre access program of the European Union, aimed to candidate states for agriculture and rural development, have been analyzed.
Keywords: development project, refund period, ARR, NPV, profitability index
JEL Classification: G31
Suggested Citation: Suggested Citation