# Utility calculation

## What is a utility calculation?

With the help of the utility value calculation, the utility value for investment objects is determined. She will too Utility analysis called. The utility value is the numerical expression for the subjective value of an investment with regard to the achievement of given goals. In contrast to traditional static or dynamic investment calculations, it can be of a qualitative nature and relate to

• Economic evaluation criteria, e.g. B. sales, procurement, production-related criteria
• Technical evaluation criteria, e.g. B. resource-related, work-physiological criteria
• Social evaluation criteria, e.g. B. monotony, stress, interest, job satisfaction
• Legal evaluation criteria, e.g. B. Regulations, patents, licenses, laws.

The utility value that arises for the alternative investment objects enables them to be ranked. An investment property is to be assessed more positively, the higher its utility value is. The investment object with the highest benefit comes first, the object with the least benefit comes last. The utility value calculation is carried out in several stages:

## Evaluation criteria

In order to be able to assess the benefits of the individual evaluation criteria and the investment objects as a whole, standards must be established. They can be based on different scalings.

1. Definition of the target criteria
2. Weighting of the target criteria with weighting factors
3. Determining the part worth of each alternative
4. Determination of the utility value, e.g. B. by adding up the part worth
5. Decision for the alternative with the highest utility value

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