Abstract

The choice of an investment project is based on all the information collected and obtained at all the previous stages of the formulation of the project, the choice of the most effective for the implementation of the investment project from the whole set of alternative ones is made. The main task to be solved in determining the financial viability of a project is to assess its ability at all stages of development to timely and fully respond to the existing financial obligations, that is, to assess the solvency and liquidity of the project. Financing of entrepreneurial firms is a set of forms and methods, principles and conditions of financial support for simple and extended reproduction. When calculating economic efficiency, the discounting method is used, for the need to compare the values of cash receipts and payments, spaced over time. In the economic assessment of efficiency in this work, a dynamic method based on discounting was used.

Highlights

  • Investment activity in the real sector of the economy in the Russian Federation is determined by the Federal Law "On investment activity in the Russian Federation carried out in the form of capital investments" No 39-FZ dated 25.02.1999. [1]

  • If we draw a conclusion on the basis of the results obtained, we can see that the company will have an internal rate of return of 24%, the level of profitability will be 1.23. Most of both domestic and foreign experts have come to the unanimous opinion that when analyzing alternative projects, the net present value (NPV), IRR and Profitability index (PI) criteria are the most appropriate for making investment decisions

  • This method includes the calculation of the following criteria: net present value NPV, profitability index PI, internal rate of return or project profitability IRR, payback period PP

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Summary

Introduction

The state has taken certain steps to develop and implement tax legislation aimed at expanding the possibilities of using its own financial resources in order to develop the country's economy [1,2,3,4]. We can say that investment activity is aimed at solving the strategic tasks of developing an industrial enterprise, creating the necessary material and technical prerequisites for this. That is why in the period of drastic changes in the economy, technology, ecology and politics, survival and success in the business world depends to a large extent on the correctness of the investment decisions made. The investment decision is embodied in an investment project [5,6,7,8]

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