Abstract
Concerning of economic evaluation Indices, traditional indices, such as Payout Time, IRR, NPV and furthermoe new ones, such as Monte Carlo DCF, Decision Tree, Real Options are discussed for evaluating investment profitability of information systems. In addition, in case of applying these indices, the capital investment can be decided from either of two perspectives: that of the entity using weighted average cost of capital, or that of the entity using return of equity. The selection of the indices and the the evaluation perspective is discussed from the perspective of consistency to the optimal investmen and of practitioner to prove by simulation the propriety and usability of Net Present Value and Real Options.
