Beam Journal of Economic Studies
Volume 6, Numéro 1, Pages 638-653
2022-03-15

The Monte Carlo Simulation As A Piler For Financial Evaluation And Comparison Between Investment Projects Under Conditions Of Risk And Uncertainty - Comparison Case Between Producing Tomato Seedlings Project And Strengthening The Durum Wheat Production Network Project In Amor Benamor Complex In Guelma-

Authors : Essalhi Meryem Yassamine . Haouam Lamia .

Abstract

This study aims to propose Monte Carlo simulation as one of the main pillars to make a rational investment decision in a way that aligns with investment environment’s changes and facing the risks and uncertainties that involved. By applying Monte Carlo simulation at Benamor complex to include the risk and uncertainty, and determine its efficiency to compare producing tomato seedlings project and creation of network to improve hard wheat’s quality, the results showed the method’s ability to Modeling cases of uncertainty, and monitoring the important variables impact on proposed projects feasibility, to lead to accept producing tomato seedlings project as the best, given its significant returns compared to second alternative.

Keywords

Monte Carlo Simulation ; Investment Decision ; Project Evaluation ; Risk ; Uncertainty