by András Nábrádi & László Szőllősi
This paper reviewed principally accepted methods applied to investment analysis. To describe every aspect of investment analysis fully would require far more space than available here, so we highlight only of few of its aspects. This study collects several well-known bibliographies, contrasts them with each other and provides explanations for having done so. There are many questions about which authors and companies agree, including about how to apply certain methods, but on others there is disagreement. Four dynamic methods (Net Present Value, Internal Rate of Return, Profitability Index, and Discounted Payback Period) are demonstrated from the viewpoint of application. Moreover, this study clarifies several sensitive questions, such as handling income taxes, inflation and uncertainty. Other examined issues are only mentioned at the end of this paper, and we will publish on these more thoroughly at a later date.