Abstract
Currently, the content of the analysis is constantly changing and improving under the influence of the market economy, liberalization of foreign economic relations, increased influence of risk factors and uncertainty on the results of economic activity. The effectiveness of the organization's activities is expressed through economic and financial indicators. In a market economy, there can be no unified system of indicators. Each investor independently determines this system based on the characteristics of an innovative project, the professionalism of specialists and managers, and other factors. Two analyzed projects are called independent if the decision to adopt one of them does not affect the decision to adopt the other. If two or more analyzed projects cannot be implemented simultaneously, that is, the acceptance of one of them automatically means that the remaining projects must be rejected, then such projects are called alternative or mutually exclusive. Projects are considered to be linked by complementarity relationships if the adoption of a new project contributes to revenue growth for one or more other projects. Projects are linked by a substitution relationship if the adoption of a new project leads to some reduction in revenue for one or more existing projects. A significant role in investment analysis is played by the characteristic of the type of cash flow inherent in the project being evaluated. An ordinary flow is called if it consists of an initial investment made at a time or over several consecutive base periods, and subsequent cash inflows. If cash inflows alternate in any sequence with their outflows, the flow is called extraordinary.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.