Investment evaluation techniques1. IntroductionAs defined by Cistelecan, L. (2002), investment is an “expenditure made now to achieve a successful future, obtaining earnings in the future”. Investments are a vital and essential issue for companies, because they can ensure the growth and development of companies, and without them companies cannot survive in competitive markets. (Katalininc, B. 2009) There are two types of investment as stated by Virlics, A. (2013). These types are fixed investments and monetary investments. Fixed investments are tangible assets, such as buildings, machinery or a plant. On the other hand, monetary investments are stocks and bonds. From another point of view and as stated by Götze, U., Northcott, D. & Schuster, P. (2008), investment can be classified based on the cause of investment as the following:Fundamental investment.Current investment .Replacement investment.Maintenance or repair.Additional investment.Expansion investment.Change investment (e.g. rationalization, diversification).Certainty investment.Making the right decision to invest or not is not a simple process. Without a solid and clear picture of future opportunities, companies risk failure. Another point, lack of adequate investment information can lead to poor decisions, and therefore a well-defined investment evaluation method is needed. The need for investment evaluation techniques in decision making is justified by Katalinic, B. ( 2009) as follows:New opportunities for the development and improvement of the company can be provided by a comprehensive analysis of the investment.The investment is associated with the reallocation of resources and liquidity, which makes a careful...... paper middle......(1). Published by DAAAM international, Vienna, Austria. Shively, G. & Galopin, M. (2000). An overview of cost-benefit analysis. Purdue University, Department of Agricultural Economics. [online]. [Accessed 2 April 2014]. Available at: http://www.agecon.purdue.edu/staff/shively/COURSES/AGEC406/reviews/bca.htmThe Manage Mentor Electronic Academy (TMM E Academy). (2003). Net present value. [online]. [Accessed 2 April 2014]. Available at: http://www.themanagementor.com/enlightenmentorareas/finance/mgr/NetPresentVal.htmVirlics, A. (2009). Decision making and investment risk. Sibiu International Economic Conference 2013 Post-crisis economy: challenges and opportunities. Published by Elsevier BV, Faculty of Economic Sciences, Lucian Blaga University of Sibiu. Watts, A. (2009). Understand your return on investment. New Zealand business magazine. Published by Adrenalina Publishing.