Effective Investment Decision for Fixed Assets Management

Abstract

Introduction. Constant changes in economic and political situation create more stringent conditions for the survival of modern businesses while requiring effective management of the enterprise’s life cycle and also investing in a simple and expanded reproduction of fixed assets. An enterprise like any socio-economic organism needs constant development, growth and renewal, only these conditions ensure its competitiveness. Theoretical and methodological aspects of selection and evaluation of the investment decisions’ efficiency are constantly the focus of scientific world attention. However, it should be noted, the issues of choosing the most rational ways and stages of making an effective investment decision to manage the reproduction of fixed assets of the enterprise are not thoroughly studied, thus, they need further efforts to develop new proposals to improve their quality and prevent possible risks. Purpose. The purpose of the article is to study the factors and stages of making the appropriate investment decision to reproduce fixed assets with efficient use of resources. Results. The aspects of effective investment decision making for reproduction of fixed assets management are researched. It is proved that the attraction of sources of financing investment decisions is influenced by objective and subjective factors. The stages of making an investment decision in order to select the optimal sources of financing of the investment project are substantiated. It is found that the decision on the reproduction of the enterprise’s fixed assets should be comprehensive and aimed at both tangible and intangible components. Conclusions. Use of managerial approach in the process of reproduction of fixed assets investment lets making effective investment decision, which is implemented through some stages with appropriate methodological support. Taking into account the objective and subjective factors influencing the efficiency of the investment decision will help to avoid difficulties in managing the reproduction of fixed assets in the long run. The choice of financing source for an investment project is the most important management decision. The decision to reproduce the fixed assets of the enterprise should be comprehensive and aimed at both tangible and intangible components. The managerial decision may be considered as effective if it is directed to achieve the resource efficiency, obtained as a result of development and implementation of the investment decisions, where financial and material investments, qualified personnel, etc. can act as resources. This requires making and implementation of such decisions by qualified managers provided that the sequence of the stages would be followed, including collection of information, decision-making and ensuring effective implementation of the investment decision. Keywords: fixed assets; investment; reproduction; efficiency; management.