Economic Efficiency Of Investments Research Articles

Small Cities: Results of The Struggle Between Two Positions

The destruction of the USSR led to the deindustrialization of Russia, particularly in small cities, including the closure of agro-industrial enterprises closely connected with the disrupted agricultural sector. The reduction/alteration of the labour market in small towns and rural areas caused population outflow, fundamentally distinguishing contemporary mass migration. The scale of moving to gas and oil production areas and capital cities has increased. Significant regional disparities in salaries also became a factor, even seen in the minimum wage (MROT), upon which many calculations and allowances rely. For instance, in Moscow in 2023, it stands at 24,801 rubles, while in the Yaroslavl region, it's 16,242 rubles. The formation of a "service economy" in the guise of a "servant economy" (security, cleaning, resale, catering, food delivery, tutoring, etc.), often yielding good income but not demanding specialised knowledge, is another factor propelling migration from peripheral areas.
 The depopulation of Central Russia, Siberia, the North, and the Far East, coupled with the loss of food security, demanded that the government formulate plans for the country's territorial development. This article analyses two development concepts characterising the discourse within the spatial infrastructure of the country. The first relies on the economic efficiency of investments in agglomerations and the unprofitability of supporting small settlements. Its proponents' arguments were most clearly articulated by E.S. Nabiullina in 2011 when she held the position of Minister of Economic Development of the Russian Federation. This concept continues the traditions initiated by the "young reformers" in the 1990s: what brings quick revenue and reduces costs is considered promising.
 The second concept is based on analysing the functions of small cities as elements not only of the economic infrastructure but also of the geopolitical, domestic political, geographic, and social infrastructure. The article particularly emphasises the works of scholars from related disciplines such as geography and economics, enabling a more comprehensive understanding of the role and position of small cities within the socio-economic space of the country.

Economic Efficiency of Investment in Facilities and Equipment for Grains Storing

Abstract Serbia disposes with strong tradition in crop production, followed by significant natural resources and favorable climate conditions. Despite the good results in grain production, farms are in general economically so weak to possess and use the storing facilities, while they sell the products immediately after the harvest. After reconsidering the lack of storing facilities and consequences it affects, strategic strivings in strengthening of farm competitiveness initiate in previous period public support turned to building of storage capacities and purchase of necessary equipment. In paper was presented the assessment (by the use of dynamic and static methods) of economic effectiveness of investment in storing capacities, i.e. silos, showing that this investment (supported by public incentives) could represent the economically justified business decision for certain farms turned to crop, specifically grains production.

INVESTMENTS IN SERBIAN PIG PRODUCTION – INFLUENCE OF REGIONAL DISPARITIES

Pig production is one of the most important elements of Serbian livestock breeding sector. Although it faces numerous challenges, there is not enough research focused on its economic effectiveness. The goal of this research is to analyze influence of regional disparities on economic efficiency of investments in Serbian pig production. The main methodological approach was to determine the present value of investments in pig production (for Mačva and Šumadija regions). Authors applied sensitivity and scenario analysis, as well. Riskiness of investments is compared using standard deviation and coefficient of variation of the expected present value. The results indicated significant influence of labor costs on net cash flows (especially in Šumadija region). Analysis revealed that (in usual circumstances) investments in pig production in Mačva region are more economically efficient. Nevertheless, rather small increase in pig price could lead to equal present values in both regions. It was determined that investments are riskier in Šumadija region.

The assessment of ecological and economic recycling effi ciency of secondary building resources: status quo, challenges and solutions

The article identifies the main features and current trends in the process of recycling secondary construction resources during the transition from a linear model of the economy to a closed-cycle economy. The study indicates the need to start recycling secondary construction resources from the period of pre-investment studies, acceptance and approval of the investment project till the termination of the project and the decommissioning of the object. The author suggests to upgrade the methodological approach to a comprehensive assessment of ecological and economic efficiency of investments in recycling secondary construction resources, taking into account current views on the functioning of natural and socio-economic systems and ensuring a balanced account of environmental and socio-economic factors. The effectiveness assessment rests on the ideas of human security, preventing negative consequences of nature management and restoration of disturbed natural ecosystems. In assessing environmental damages and effects, special attention is given to analyzing the nature and extent of possible changes in the state of the main components of natural environment. The analysis concludes with practical testing of the proposed methodological approach to assessing investment efficiency in recycling secondary construction resources.

Methodology for calculating the criteria of economic efficiency of investments in nuclear icebreakers

An economic and analytical model for evaluating the criteria of efficiency (profitability) of investments in the projects of innovative nuclear icebreakers of the Northern Sea Route is suggested. The model is based on the new analytical representation of the methodology for forecasting the investment project efficiency that is widely used in international practice. The mathematical expression for the net discounted income provides convenient formulas for calculating several investment efficiency criteria for nuclear icebreakers: internal rate of return, minimum annual revenues from icebreaker convoys, discounted payback period, and the volume of delivered cargo. The paper gives estimates of the criteria for the efficiency of investments in “Leader” class icebreakers that depend on the discount rate of cash flows, capital, and operating costs. It is shown that at high capital costs, typical for construction of “Leader” class nuclear icebreakers, the minimum required revenue of an icebreaker, representing a financial burden for ships transporting cargo along the NSR, rapidly increases with the growth of discount rate and the reduction of investment payback period. This means that the profitability of such icebreakers is only possible at low discount rates of 2–3% per year, which is an extremely low-interest credit. Even with low interest and impressive technical characteristics of the icebreaker (high speed of navigation, large number of ships in the caravan and their maximum capacity) the payback period would exceed 25 years.

MAXIMIZING THE PROFITABILITY ON INVESTMENT BY OPTIMIZING THE PRODUCTION PROGRAM

Investments in tangible fixed assets significantly affect the future production capacity of the company, they are a stimulator of the company's development. At the same time, they are associated with a degree of uncertainty that needs to be taken into account when making investment decisions. The article presents an approach to optimizing inhomogeneous production in order to maximize the economic efficiency of a particular business investment. The economic efficiency of the investment is assessed comprehensively in terms of profitability, liquidity and risk. The risk is addressed through Monte Carlo simulation and the production program is optimized using OptQuest. The result is a production program that maximizes the return on the assessed corporate investment.

Economic efficiency of investments in the tourism industry of the Republic of Kazakhstan

The article examines the mechanisms of attracting investment for the effective development of the tourism industry in the Republic of Kazakhstan and the issues of consolidation of investments in the industry, determines the prospects for development by analyzing the current situation. The efficiency indicators of the investment process in the tourism industry of the Republic of Kazakhstan were studied, and the consequences of the COVID–19 pandemic were considered. Taking into account the latest trends in the economy and society, the conditions necessary for the recovery of the industry were evaluated. The coronavirus pandemic in early 2020 has had a major impact on the state and further development of all sectors of the world economy, including the tourism industry. Such a serious crisis in the tourism industry has not been observed since the second world war. However, not every crisis can only lead to negative consequences. The analysis showed the underdevelopment of the tourist infrastructure, the unwillingness of the tourism business to invest in its development, which requires more global investment volumes. The article examines modern realities and innovative challenges of this test, which is important for the entire tourism industry, such as accelerating the digitalization of tourist services, more active implementation of modern technologies, as well as updating the ecological aspect of tourism, expanding the geography of tourist routes throughout the country, etc. The conclusions and suggestions made based on the results of the study can be used in making investment decisions, used as educational and methodological materials in the study of investment processes in tourism.

Evaluation of ecological and economic efficiency of investment in water management and land reclamation projects

The article is devoted to the actual scientific and practical problem of improving methodological and methodical ap-proaches to the evaluation of design solutions in the water management and land reclamation industry based on the ecolog-ical and economic principles in conditions of uncertainty. The current stage of the development of the water management sector in Ukraine is characterized by a combination of past negligence and the present energy, food and water crises, as well as global climate change. To solve these problems, it is necessary to reform organizational-economic relations in the industry, including new sources and forms of financing for water management and land reclamation projects, introduction of new environmentally advanced technologies, and the im-provement of the existing ecological and economic evaluation of investments. Based on scientific and methodological recommendations used for evaluating the effectiveness of investment in vari-ous spheres of economic activity, the authors developed and implemented an improved methodology for the evaluation of water management and land reclamation projects. It is based on methodological approaches that cover such elements as the variety of options, changes in the value of money over time, specific project implementation environment, including the impact of weather, climate and environmental factors on project performance, multilevel and gradual evaluation of a pro-ject against specific criteria and according to stages of the project cycle. The method was tested during the reconstruction of a rice irrigation system in the steppe zone of about 3000 ha in Ukraine. Economic results, namely the deterministic payback period and investment return index confirm that the proposed mechanism, unlike the traditional one, increases the economic and environmental feasibility of water management and land reclamation projects. Therefore, it stimulates investment in the land reclamation sector.

Investment efficiency of business in Ukraine: realities and assessment methodology

The article systematized factors of investment attractiveness and investment climate in Ukraine. The expediency of supplementinganexistinglist of components of investment climate is substantiated by two additional factors. Themechanismo factionoftheproposedfactorsthatreflectthenegative effectin the developmen to freformsand innovations, aswellas the economic efficiency of construction projects on the financial result, expected from investigations, isrevealed. The trends in the developmen to finvestment activityinUkrainein 2015 - 2020, the existence of reserves for increasing the economic efficiency of investments and the need for their calculation witht hehelpof a special methodological approac hare analyzed. The methodical approach to the evaluation of investment efficiency of constructionis developed, which is based on the magnitude of the multiplier of capital investment in construction inthelong-termperiodandrefinedtheboundariesoftheretrospectivehorizon, which are necessary to determine such a multiplier. The rapid importance of aninvestment multiplier of construction isestablis hedand a methodological approach to qualitative interpretation of this indicator issubstantiated. The basis of a methodological approach is the results of a cluster analysis of aninvestment multiplier in the contex to fvarioustypesofconstructionandregions, the methodof K-medium, aswellaspostulatesofthetheoryoffuzzysets. Within the framework of the developed methodological approach, the "investment attractiveness of construction" characteristicsis presentedin the form of a fuzz yterm-shear, which combines three terms: "Lowefficiency", "averageefficiency", "highlevelofefficiency". Inaccordance with descriptiv estatistics of thereceived clusters, the parameters and type of functions of affiliation, the boundaries of clusters that directly affecttheuse of correctivea mendments to the value of the economic effectof capitalinvestment to the level of the contractor-executor of construction work are substantiated. The sizeofther is kfactorisestablishedtakingintoaccountthetypeofconstructionandmedium-layervalues ​​ofmultipliersofcapitalinvestmentinconstruction. Theuse of the proposed Metdic approach to the analysis of investment efficiency inconstruction makesitpossible to increase the accuracy of calculations on th epre-investmentst age of construction, aswellastoimprovemonitoring of capital investment development, carried out in the process of implementing national investment programs and international investment projects.

Economic efficiency of investments in producing a mixture from brewing waste for the recultivation of soil contaminated with oil and oil products

The study of the economic efficiency of investments in the production of a mixture of brewing waste provides an opportunity to assess the possibility of its practical use for the restoration of soils contaminated with oil and oil products. The UNIDO methodology is applied to calculate the costeffectiveness of investments in the brewing waste drying line for the remediation of contaminated soils. Fulfillment of the underlying conditions for the effectiveness of investments and the absence of a negative balance in the financial plan indicate the efficiency and feasibility of investments.

Economic efficiency of breeding Tsigai sheep in the Central and South - East Europe

Tsigai is an indigenous sheep breed present in entire Central and South-East Europe. Due to its low meat and milk production number of Tsigai sheep is in a sharp decline. But, there is a strong need to preserve valuable genetic resources of this breed. Therefore, the goal of this research is to evaluate economic performance of Tsigai breeding and to define strategies for its future use. In the paper profitability of Tsigai breeding is determined as well as economic efficiency of investments in Tsigai farms (using Net Present Value and Internal Rate of Return). To perform the analysis in risky circumstances authors applied sensitivity and decision tree approach. The results indicated that breeding of Tsigai sheep requires state subsidies to be profitable and economically efficient. Decision tree approach resulted in calclation of expected NPV. Investments in Tsigai farms proved to be economically efficient, but associated with high level of risk.

ОЦЕНКА ЭКОНОМИЧЕСКОЙ ЭФФЕКТИВНОСТИ ИНВЕСТИЦИЙ В РАЗВИТИЕ САДОВ ИНТЕНСИВНОГО ТИПА

The article substantiates the need for the development of horticulture as the most important sub-sector of crop production. Objectives-justification of the need for the development of horticulture based on the inten-sification of the industry, the use of innovative anti-hail systems and the assessment of the economic efficiency of investments. The typology of apple orchards is revealed, the prospects of using innovative technologies in the industry due to the use of the advantages of super-intensive gardening are argued. An investment project is proposed and its effectiveness is evaluated.

Evaluation of the economic effectiveness of investments in commercial real estate using the switch option

Deciding whether an investment should be made or not requires an evaluation of the investment’s effectiveness. The choice of evaluation methods is related to the basic objective conditioning the implementation of the investment project. It often happens that the conditions in which a specific investment has been formulated change and so does the basis for its implementation, and it is necessary to adapt it to the new conditions. These new conditions could be recognized during the exploitation of the project so it is hard to take them into consideration at the stage of planning. The paper aims to evaluate the investments in commercial real estate with the option of alternative way of usage. This evaluation was carried out using the classical (discounted) methods of economic efficiency of investments and real options. Two groups of pricing real options models were used in the study: binomial models and continuous-time models. Results based on varied valuation methods lead to different conclusions. Unlike the discount methods, the real option approach allows valuing the project flexibility (which cannot be valued by classical methods). This value of flexibility in certain conditions indicates what should be the path of development of the project related with the transformation of commercial real estate for other purposes.

ANALYSIS OF THE INFLUENCE OF AN ABSOLUTE ACCELERATION ON THE SPEED OF MOVEMENT OF PASSENGER TRAINS

The economic efficiency of investments in railway transport in the new economic conditions should be fully justified. The task is not so simple. It causes some difficulties, because it is not always at the disposal of the decision-maker, at an early stage of design are sufficiently reliable and well-systematized initial data.The General trends of the analysis of recent studies are that in times of market economy one of the main tasks of any innovation is its cost and competitiveness. According to existing forecasts, high-speed traffic in the near future can cover much wider sector of passenger traffic than high-speed, as its organization is not associated with the construction of a new line, although it requires significant reconstruction costs. Correctly determine the amount of capital investment in the reconstruction-this is the main task of the economic justification of the introduction of high-speed traffic.One of the main tasks in the introduction of high - speed traffic on the directions of the railway of the Republic of Belarus (v = 141-200 km/h) is its feasibility study. To solve this problem, it is necessary to consider the structure of the efficiency criterion in the case of reconstruction of the line for high-speed passenger trains and determine the overall efficiency of the use of new rolling stock. The calculation of the efficiency of reconstruction includes the amount of investment or capital investment required for the implementation of the project solution; annual current costs arising in the process of project implementation and then its implementation; construction and operating costs are given; income or profit received from the implementation of the project. Determining the overall efficiency of the implementation of high-speed traffic will allow us to say about the approximate payback period of the project and its costs.

Evaluating the social and economic efficiency of investment in high-tech perinatal centers considering the learning curve effect

Evaluating the social and economic efficiency of investment in high-tech perinatal centers considering the learning curve effect

MODERN METHODS OF VALUATION OF INVESTMENT’S ECONOMIC EFFICIENCY IN THE AGRICULTURAL BUSINESS

The period of transition of the national economies from the socialist system to the market economy system is marked by a whole series of economic and social events, where investments represent a driving force for the country's economic development. The aim of the research is to provide scientific assistance on the widespread use of modern methods, recognized in developed industrialized countries, to elaborate and/or evaluate investment projects on the basis of which the indigenous agricultural sector will be able to survive in harsh conditions of often unfair competition from the part of Western agricultural producers. The main research methods are qualitative and quantitative analysis of economic events, comparative and statistical comparisons, dynamics and trend studies, economic and mathematical methods to justify the economic efficiency of investments, etc. As the results, obtained from the out carried researches, can be called the algorithms of calculation and performance indicators for assessing the level of economic efficiency of agrarian business investments, which for year along are successfully used in the Western European countries, but practically totally ignored within the national economy of the Republic of Moldova.

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

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.

Creating an expert system for assessing the economic efficiency of investments in information security

The need for tools substantiate and assess the effectiveness of investment in information security - one of the most important problems of our time. The possible direction of the solution of the identified problem is the construction of an expert system that will improve the efficiency and operativeness of the decisions made. The basis for building such a system is most appropriate to choose the methodology of ROSI - the estimation of the return of investments in information security, which in particular allows you to determine the payback period of the investment project. The developed program model of expert system allows to reasonably estimated effectiveness of the cost for information security.

МЕТОДИЧНІ ЗАСАДИ ОЦІНЮВАННЯ ЕКОНОМІЧНОЇ ЕФЕКТИВНОСТІ ІНВЕСТУВАННЯ РОЗВИТКУ ПІДПРИЄМСТВ

Ensuring economic development of enterprises requires from them the investment of financial resources. Herewith there are many directions of such investment, methods and sources of financing of investment projects, in particular, the purchase of fixed assets and other assets. When adopting investment decisions on the acquisition of assets, the enterprise should compare the expected cash flows from the exploitation of these assets with the amount of investments in their purchase. Under such conditions, it appears a need for a retrospective assessment of the economic efficiency of investments in the acquisition of assets by enterprises in previous periods. The purpose of this article is to develop methodical bases for assessing the economic efficiency of investment in enterprise development. The method of assessing such efficiency for the totality of the available assets at the enterprise is developed, taking into account the terms of their acquisition and the value of net cash flow from their exploitation from the moment of their acquisition until the moment of assessment. It is proposed to evaluate the indicator of the period of achievement of the minimum required efficiency of investments in the development of the enterprise. This period represents the time interval between the moment of investing in the acquisition of assets of the enterprise and the moment when the received cash flow will provide the minimum acceptable level of economic efficiency of invested money. The article shows that the achievement of the minimum acceptable efficiency of investment in the development of the enterprise is a criterion for the success of its investment activity. The factors influencing the period of achievement of minimum acceptable efficiency of investment in the development of the enterprise are determined. Directions for reduction of this period are determined. In particular, they include the optimization of volumes of current assets of the enterprise. A model for determining the value of financial results of the enterprise, which will provide the minimum acceptable efficiency of funds that were invested in tangible assets of the enterprise in previous periods, is proposed. Implementation of the developed methodical principles for assessing the economic efficiency of investing in the development of enterprises in their practice will improve the monitoring of investments realized by enterprises and the process of regulating their investment activity.

Economic efficiency of investment in greenhouse vegetable production without heating

This paper analyzes the economic effectiveness of vegetable production in a protected area in terms and in a manner that is characteristic of the analyzed area (Bijeljina, Bosnia and Herzegovina). Dynamic methods for evaluating the economic feasibility of the investment were applied to two models of vegetables production in greenhouses. Models represent completely alternative investments, so the choice between them is based on the net present value. Economic justification under risk conditions was checked using the scenario analysis. The results of the survey indicate that the investments in both models are justified both in optimal and risky production conditions. The model that includes the production of two crops is economically more efficient than the production of one crop per year. The same model will take precedence also in risky production conditions, as indicated by the higher expected net present value and lower value of the coefficient of variation.