scholarly journals DETERMINATION OF OPTIMAL FUNDING SOURCES FROM A SET OF ALTERNATIVES

2021 ◽  
pp. 55-63
Author(s):  
N. Koshevsky
Keyword(s):  
Capital Structure ◽  
Economic Efficiency ◽  
Investment Project ◽  
Point Of View ◽  
Practical Case ◽  
Baseline Scenario ◽  
Investment Projects ◽  
Funding Sources ◽  
Return On Capital ◽  
The Impact

The introduction provides a brief review of the literature on methods for assessing the effectiveness of investment projects, based on which the choice of optimal sources of financing is made. In the main part of the work, various scenarios for the implementation of an investment project are disclosed: sources of financing that are alternative to the baseline scenario are attracted. In the final part of the work, the considered scenarios are assessed and conclusions are drawn.For each enterprise, improving the financial and economic efficiency of its activities is one of the priority tasks. These tasks include the need to increase the return on capital, the choice of funding sources that have a positive effect on economic efficiency. This paper examines the ways of choosing the optimal, from the point of view of the impact on economic efficiency, instruments for financing an investment project. A practical case of project financing with an assessment of the effectiveness of the implementation of an investment project is considered. To analyze the alternatives, a financial business model was developed, which allows you to quickly make changes, update performance indicators and make decisions about the required capital structure. It is concluded that the optimal capital structure with the highest NPV indicator and that when assessing the efficiency parameters, it is necessary to make an adjustment for the possible presence in the company's capital structure of funding sources that distort the comparability of the project in relation to projects without such sources (for example, budget grants).

scholarly journals Assessment of the impact of the duration of construction on the effectiveness of the investment project

2019 ◽  
Vol 135 ◽  
pp. 04021 ◽  
Author(s):  
Elena Mikhaylova
Keyword(s):  
Economic Efficiency ◽  
Capital Investment ◽  
Investment Project ◽  
Mathematical Expression ◽  
Analytical Description ◽  
Mathematical Apparatus ◽  
Investment Projects ◽  
Investment Process ◽  
Quantitative Indicators ◽  
The Impact

The article discusses the relevance and necessity of assessing the impact of the duration of construction on the economic efficiency of investments. Using a mathematical expression, the profit received by the investor during the life cycle of the direct investment process is described. The peculiarity of investment projects involving the creation of capital investment (real estate), is the period of time during which profit is impossible. This period of time is equal to the duration of construction, including installation of technological equipment and commissioning. An analytical description of the degree of influence of the duration of construction on the indicators of economic efficiency of the investment project (profitability and profitability of property) is proposed. On the basis of the learned expressions, a numerical experiment was performed and graphs were constructed. The results of the research prove the possibility of analytical description of the degree of influence of the duration of construction on the quantitative indicators describing the investment project (profitability (Bank interest), profitability of the created property). It seems that the described approach allows to carry out forecasts which reliability surpasses the results obtained, for example, by means of expert estimations. The proposed mathematical apparatus is much simpler than the methods of probability theory and fuzzy set theory.

scholarly journals METHODOLOGY FOR EVALUATING THE EFFECTIVENESS OF INVESTMENTS IN THE EXPANSION OF UNIVERSITY HOUSING INFRASTRUCTURE

THE BULLETIN ◽  
2021 ◽  
Vol 389 (1) ◽  
pp. 202-207
Author(s):  
Z.N. Chikibayeva ◽  
U.Zh. Shalbolova
Keyword(s):  
Doctoral Students ◽  
Economic Efficiency ◽  
Housing Stock ◽  
Investment Project ◽  
Student Housing ◽  
Infrastructure Investment ◽  
University Housing ◽  
Investment Projects ◽  
Qualitative And Quantitative ◽  
Funding Sources

The article deals with the problem of assessing the socio-economic efficiency of investment in the expansion of University housing infrastructure. Evaluating the effectiveness of investment design solutions is the main approach to determining the return on investment of financial resources in expanding the Fund of student dormitories, in which both investors and all participants in the implementation of investment projects for the construction and modernization of student dormitories are interested. To determine the socio-economic efficiency of the investment project for the construction of housing infrastructure of higher education institutions, a system of indicators was formed. Methods for calculating the socio-economic efficiency of housing infrastructure investment projects based on qualitative and quantitative criteria are considered. A step-by-step implementation of methods for assessing the socio-economic efficiency of projects for the modernization of student housing stock is presented. Since all regions of Kazakhstan set the task of expanding the University's housing infrastructure through the construction of new and reconstruction of existing dormitories with the use of public-private partnerships, there is a need to expand student housing Fund, which is based on the data of the operator of the state program of JSC "Financial center" of the MES RK, which determines the need, funding sources, manage cash flow to ensure the introduction of new places in hostels for students, undergraduates and doctoral students, draws up contracts with investors.

The development of the pension system of Russia: Challenges and opportunities

2021 ◽  
Vol 27 (11) ◽  
pp. 2548-2574
Author(s):  
Andrei I. MASTEROV
Keyword(s):  
Russian Federation ◽  
Pension System ◽  
Investment Project ◽  
Investment Climate ◽  
Demographic Trends ◽  
Investment Projects ◽  
Challenges And Opportunities ◽  
The Russian Federation ◽  
Low Efficiency ◽  
The Impact

Subject. This article analyzes the economic and demographic conditions for the Russian pension system’s development and the impact of the effectiveness of investment projects implementation on pension savings. Objectives. The article aims to analyze the Russian pension system’s development difficulties in terms of an unfavorable investment climate and negative demographic trends, and identify ways to propel the pension savings investing profitability increase. Methods. For the study, I used induction and deduction, and the methods of systems and statistical analyses. Results. The article offers recommendations for the development of a system of measures aimed at improving the methodological support for the preparation and implementation of management decisions on investment project management. Conclusions and Relevance. Solving the problems of the pension system through the development of voluntary pension savings is constrained by the low efficiency of the investment projects implementation. The results of the study can be used when developing legislative, organizational and methodological measures aimed at improving the efficiency of investing pension savings in investment projects implemented in the Russian Federation.

scholarly journals Simulation Modeling in Assessing the Effectiveness and Risk of Investment Projects

2020 ◽  
Vol 22 (1) ◽  
pp. 119-124
Author(s):  
Volodymyr Kharchenko ◽  
◽  
Hanna Kharchenko ◽  
Keyword(s):  
Monte Carlo ◽  
Monte Carlo Method ◽  
Agricultural Production ◽  
Random Number ◽  
Investment Project ◽  
Average Risk ◽  
Universal Method ◽  
Investment Projects ◽  
The Monte Carlo Method ◽  
The Impact

Introduction. The article deals with the modeling features in the implementation of investment projects using the Monte Carlo method. The purpose of the article is to substantiate the feasibility of using economic and mathematical models to identify the risks of investment projects in agricultural production, taking into account the randomness of factors. Results. The expediency of using this method during the analysis of projects in agriculture is determined. This type of modeling is a universal method of research and evaluation of the effectiveness of open systems, the behavior of which depends on the influence of random factors. Particular attention is paid in such cases to decisions on the implementation of investment projects. The expediency of using this method in the analysis of projects in agriculture is determined. The main characteristics of the investment project are considered: investments involve significant financial costs; investment return can be obtained in a few years; there are elements of risk and uncertainty in forecasting the results of the investment project. The algorithm of the analysis of investment projects consisting of various stages is offered. The importance of investigating the risks of investment projects in agricultural production is substantiated. It is investigated that the basis of the Monte Carlo method is a random number generator, which consists of two stages: generation of a normalized random number (uniformly distributed from 0 to 1) and conversion of a random number into an arbitrary distribution law. The task of choosing an investment project for a pig farm is proposed. The calculations revealed that the amount of the expected NPV is UAH 63,158.80 with a standard deviation of UAH 43,777.90. The coefficient of variation was 0.69, so the risk of this project is generally lower than the average risk of the investment portfolio of the farm. Conclusions. The results of the analysis obtained using the method of Monte Carlo simulation are quite simple to interpret and reflect the change of factors over a significant interval, taking into account the probabilistic nature of economic factors. Thus, this method allows the implementation of the investment project to assess the impact of uncertainty on the final result of the project.

scholarly journals Safety in construction in the field of investment in urban infrastructure

2019 ◽  
Vol 97 ◽  
pp. 06034 ◽  
Author(s):  
Elena Lyapuntsova ◽  
Iulia Belozerova ◽  
Ilona Drozdova ◽  
Oleg Korol
Keyword(s):  
Urban Landscape ◽  
Investment Project ◽  
Urban Infrastructure ◽  
Integrated Approach ◽  
Positive Influence ◽  
Risk Tolerance ◽  
State Budget ◽  
Internal Markets ◽  
Investment Projects ◽  
The Impact

The purpose of the article is to review the theoretical foundations and practical examples of investor assessment with an integrated approach to the development of urban infrastructure. The article analyzes the conditions for reducing the investment costs of projects. For this purpose, methods of clarifying the conceptual apparatus, classification, systematization and an integrated approach are used. The significance of an investment project depends on its positive influence on at least one of the external or internal markets: material and financial products, services and labor, on the social environment and the environment. Examples are provided of the impact on urban planning and the ecology of the urban landscape of investment projects in the field of tourism in recent years, implemented at the expense of the Federal Target Program “Development of domestic and inbound tourism in the Russia for 2011-2018.” in Sarapul, Barnaul and Cherepovets. The authors conclude that in the examples cited there is a relationship between the risk tolerance of the project and the complexity of the approach to its implementation, and as a result, the amount of investment. Large projects are designed not only to solve specific problems of the investor, regions, economy, state and society, but also ensure the profitability of the state budget at various levels, create new jobs, ensure GDP growth in the country and investment in various sectors, create conditions for the development of the country’s regions. The narrowly focused investment projects are fraught with great risks for the investor due to the selectivity and limited scope of the manifestation of effects.

scholarly journals CAPITAL STRUCTURE AS DETERMINANT OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN ETHIOPIA (A CASE STUDY ON PRIVATE BANKS IN ETHIOPIA)

2021 ◽  
Vol 9 (03) ◽  
pp. 216-231
Author(s):  
Taddesse Shiferaw Deneke ◽  
◽  
Tripti Gujral ◽  
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Commercial Banks ◽  
Empirical Relationship ◽  
Asset Return ◽  
Return On Equity ◽  
Net Profit ◽  
Return On Capital ◽  
The Impact ◽  
The Capital Structure

A lot of studies have actually been done by numerous researchers both in developed and developing countries such as Ethiopia to ascertain the empirical relationship existing between capital structure and firm performance with varying samples and period as well as application of several and divergent statistical estimation. This study is based on the identification of the impact that capital structure have on the financial performance of commercial banks in Ethiopia. In this regard, secondary data is collected from varied sources especially annual reports of the private commercial banks in Ethiopia. The literature review is done in the report, and it is identified operating, and the capital structure heavily affects net profit. Apart from this, return on equity, asset and capitals employed also affected by the capital structure of the banks. Regression analysis and descriptive analysis tools are used to analyse the data that is related to the sixteenprivate commercial banks in Ethiopia. On analysis of data, it is identified that operating and net profit is heavily affected by the capital structure. However, in the case of return on asset, return on equity, and return on capital employed, such kind of relationship is not observed. Thus, it is concluded on the basis of entire work that capital structure have the huge impact on the operating and net profit, but it does not put any large impact on the return on asset, return on equity and return on capital employed. The study recommended that banks follow a specific policy, in order to maintain a balance in the capital structure. It is also recommended that managers must keep a keen eye on the changes that are taking place in the capital structure.

scholarly journals The Risk of Long-Term Financing of Public Investments

2019 ◽  
Vol 2 (2) ◽  
pp. 42
Author(s):  
Krzysztof Jarosiński ◽  
Benedykt Opałka
Keyword(s):  
Public Debt ◽  
Negative Impact ◽  
Capital Expenditure ◽  
Public Investment ◽  
Point Of View ◽  
Risk Category ◽  
Investment Projects ◽  
The Public ◽  
Public Investments ◽  
The Impact

The risk of financing of public investments is a phenomenon that accompanies development processes in a permanent manner. Investments in the public sector are generally characterized by relatively long implementation cycles and involve significant capital expenditure and the necessity of often parallel running a large number of investment projects. In the processes of this type of investment a specific risk category of financing of this type of investment is quite often taken into account, given that such projects are financed mainly from budgetary resources: the state budget and self-government budgets. Economic practice indicates an importance of the proper selection of the method of the financing of new investments and taking into account new funds from various sources. This situation is often the result of a shortage of budgetary resources from which public investments could be financed. There may be difficulties in financing investments resulting from the emergence of a risk of budgetary deficit and the public debt. This risk may have a negative impact on investment decisions and may adversely affect the future course of ongoing investment projects. The purpose of the paper is to undertake studies on the conditions of financing investments from the point of view of the possibility of budget deficit and public debt and the impact of changes in the financial situation on the overall level of risk of public investment. The text is an invitation to undertake a broader discussion on financing public investments in conditions of limited public financial resources.

scholarly journals ASSESSMENT OF THE INVESTMENT PROJECT EFFECTIVENESS FOR THE ACQUISITION OF COMPANIES BY THE DIRECT INVESTMENT FUND

2020 ◽  
pp. 164-171
Author(s):  
G. G. Utenov
Keyword(s):  
High Performance ◽  
Private Equity ◽  
Investment Project ◽  
Operational Efficiency ◽  
Investment Fund ◽  
Investment Projects ◽  
Private Equity Fund ◽  
Equity Funds ◽  
Private Equity Funds ◽  
The Impact

The performance of investment projects in acquisitions of companies by private equity funds has been explored by assessing the financial and valuation results of such transactions in two directions: change in the valuation multiple of an acquired company over the period of the investment project and the impact of a fund on a company’s operational efficiency. As a result of the analysis, the hypothesis of the higher EV/EBITDA exit multiple of the private equity fund compared to the same entry multiple was not confirmed. However, the hypothesis that private equity funds are able to increase the operational efficiency of portfolio companies on average better than other types of investors, confirms the effectiveness of private equity funds and high performance of such investment projects.

scholarly journals Methods of multi-criteria evaluation of economic efficiency of investment projects

2021 ◽  
pp. 93-98
Author(s):  
Oksana Isai ◽  
Olha Romashko ◽  
Andriy Semenov ◽  
Tetiana Sazonova ◽  
Ivanna Podik ◽  
...  
Keyword(s):  
Economic Efficiency ◽  
Investment Project ◽  
Optimal Investment ◽  
Stable Operation ◽  
Investment Activity ◽  
Investment Projects ◽  
Advantages And Disadvantages ◽  
Investment Option ◽  
Fierce Competition ◽  
High Level

In the context of globalization and fierce competition in world markets, the high level of investment activity in the country is a key to economic and innovative development. The high level of wear and tear of fixed assets in developing countries gives special relevance to solving the problem of attracting investments for production development. Hence, for the investment management system choosing an optimal variant among several available investment projects is one of the most responsible stages of ensuring the stable operation and sustainable development of an enterprise. In this regard, the aim of the article is to develop a comprehensive multi-criteria approach to choose the best investment option. The article analyzes the existing methodological approaches to assess the economic efficiency of the investment projects, identifies their advantages and disadvantages. A multi-criteria method of investment project evaluation is proposed, which is characterized by the absence of restrictions on the number of individual evaluation indicators and the possibility for the investor to determine the significance of every indicator using weights independently. The use of the proposed methodology by enterprises will improve the quality of management decisions at the stage of choosing the optimal investment option.

scholarly journals NSR and NSTC projects: environmental and economic efficiency assessment of the goods’ overseas transportation

2021 ◽  
Vol 112 ◽  
pp. 00025
Author(s):  
Sergey Nikonorov ◽  
Alexander Krivichev ◽  
Vladimir Sidorenko
Keyword(s):  
Economic Efficiency ◽  
Investment Project ◽  
Payback Period ◽  
Fuel Oil ◽  
Environmental Damage ◽  
Investment Projects ◽  
Efficiency Assessment ◽  
Digital Format ◽  
State Corporation ◽  
Cargo Transportation

The authors attempt to assess the environmental and economic efficiency of investment projects for the goods transportation by the northern seas of Russia taking into account the relevance of the topic of cargo transportation by means of the “Northern Sea Route” (NSR) and new concept of the digital format of the “Northern Sea Transit Corridor” (NSTC) implemented by the “Rosatom” State Corporation. The structure of import-export and transit traffic by the NSR in 2020 is considered. The goal of the article is to evaluate the efficiency of investment project for the goods transportation forwards and backwards by the NSR from Murmansk city to PetropavlovskKamchatsky city using the example of the “Andrey Osipov” shipping facility. Some indicators were assessed: planned revenue, payback period; NPV, environmental damage. The following results are obtained: the payback period is 10 years; by using the naval fuel oil over a ten-year period, 1101.6 tons of SOx, 143.1 tons of CO2, 288.9 tons of NOx will be emitted. In addition, the authors propose an innovative approach to creation of ships from new materials and technologies based on the modern paradigm of “Accelerated Digital Certification”.

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