Efficiency Of Investment Projects Research Articles

Industrial plants investment projects efficiency estimation based on simulation and artificial intelligence methods

Methods and software enabling the estimation of efficiency and the comparisons of alternative designs of industrial plants are discussed. Problem of efficiency estimation for investment projects of industrial plants is formulated in the terms of decision theory. Presented approach is based on the reduction of multicriterion problem of investment project estimating to one-criterion problem. Application of simulation and artificial intelligence (AI) methods for estimation of technological and structural decisions, is the central feature of presented approach. Designed simulation model refers to discrete-event class. Object-oriented approach was applied for designing of the model and programming language C++ for its implementation. After it’s successful implementation this model was improved, in order to obtain robust, adaptive, re-configurable and responsive system. That was done with self-organization, self-learning, self-adaptation, self-optimization. This approach is based on application of AI methods (multi-agent systems (MAS), in particular) for simulation model development. MAS is a bio-inspired paradigm that allows to design systems based on autonomous and cooperative agents, exhibiting modularity, robustness, flexibility, adaptability and re-configurability. Presented methodology is tried-and-true method which applies on the phase of designing and engineering of industrial plant. This approach is discussed on the example of foundry plant with moulding line.

Financial Analysis of Investment Projects Efficiency in Railway Transport

Financial Analysis of Investment Projects Efficiency in Railway Transport

Modeling an investment process from taxation perspective under inflation

Subject. The article discusses a model to evaluate the performance of investment projects taking into account taxation in the context of inflation. Objectives. The aim is to develop formal tools for investment project efficiency evaluation to unveil the impact of various taxation schemes on project performance under main types of inflation. Methods. The study draws on methods of systems analysis, economic-mathematical modeling, financial mathematics, statistical economics, and mathematical analysis. Results. The paper provides a detailed analysis of the impact of inflation on tax payments under various tax regimes when evaluating the investment project performance. I developed a method to calculate indicators of project performance under the main types of inflation, using an analytical model that considers tax expense under various tax treatment. Conclusions. The analytical model enables to elaborate the generalizing record of formal tools for investment process efficiency evaluation as applied to the specifics of tax payments in the investing activity of some enterprises. Calculations of investment project efficiency in the conditions of inflation in nominal and real cash flows are not equivalent because of the existence of non-indexed taxes and amortization charges. When calculating in real prices, it is necessary to consider this adjustment.

Методический инструментарий принятия управленческих решений о поддержке региональных экологических проектов

The purpose of the study was to develop a methodological toolkit for the substantiation of investment decisions on supporting regional environmental projects by state and private investors. The problem lies in the fact that traditional indicators of the efficiency of investment projects, such as net present value, budgetary efficiency, currently do not sufficiently meet the principles of sustainable economy, which underlie modern methodology for managerial decision making. The study of the opinions of investors shows their increasing willingness to take into account, when making investment decisions and decisions on financing projects, not only the economic efficiency, but also the impact of the results of companies’ activities on the environment and human health. At the same time, the question of how to take into account ESG factors (environment, social, governance) in the assessment of investment decisions remains controversial. The authors suggest a methodology that will contribute to the justification of management decisions regarding the support and stimulation of investment eco-projects. The method assumes a sequential passage of stages, at each stage the projects undergo an assessment procedure for compliance with the criteria that take into account the interests of various project stakeholders (government, investors, society) and the calculation of ratings: the rating of ESG factors and the rating of economic efficiency of eco-projects. The authors have also developed a matrix for managerial decision making to support an investment eco-project based on the analysis of the ratings obtained. The proposed conceptual approaches and models make it possible to clarify the methodological tools for effectiveness assessment of eco-projects, contribute to the improvement of the theory and practice of financial management, harmonization of ESG principles and investment management, adequate to the conditions of the concept of sustainable economic growth.

CONSTRUCTION OF ECONOMIC AND MATHEMATICAL MODEL OF OPTIMAL DISTRIBUTION OF INVESTMENTS: SCENARIO APPROACH

The purpose. The purpose of the work is to substantiate the theoretical provisions, methodological and practical aspects of the optimal allocation of investment resources based on the scenario approach and assess the effectiveness of the proposed projects of the enterprise. Methods. During the research the methods of system analysis and logical generalizations, statistical and comparative analysis, mathematical model of evaluation of efficiency of investment projects, scenario approach, apparatus of Bayesian networks were used. The results. A scientific approach to the optimal distribution of investment resources using economic and mathematical modeling is proposed. The solution to the problem of evaluating the effectiveness of enterprise projects is based on an integrated indicator of the feasibility of the project. Scientific novelty. Scenario approach to management decisions on optimal distribution of funds between projects is formed. Its difference from existing approaches is based on economic-mathematical modeling, which provides situational modeling of scenarios by an algorithm containing a qualitative description of the process and construction of a quantitative model. The practical significance proposed in this paper are implemented and applied in the current activities of JSC "DniproAzot".

INDICATORS OF EVALUATION OF EFFICIENCY OF DEVELOPMENT OF HOTEL ENTERPRISES

The purpose of the article is to determine the system of indicators for assessing the effectiveness of hotel enterprises. It is determined that the main criterion of the value of the investment project is the criterion of net discounted income. It is noted that the modified internal rate of return (MIRR) eliminates the lack of internal rate of return of the project, which occurs in the case of repeated outflows. It is noted that today there is no single approach to assessing the effectiveness of investment in hotel enterprises in accordance with the forms of ownership and their size, which is due to the need to ensure compliance with performance evaluation criteria and a system of indicators. Statistical and dynamic indicators of investment evaluation are considered Indicators are analyzed: simple (accounting) rate of return on the project (ARR), payback period (PP) Performance indicators taking into account the time factor are considered: discounted payback period (DPP), net discounted income (NPV), discounted profitability index (DPI), internal rate of return (IRR) and some others. The disadvantage of the discounted payback period has been identified - it does not take into account subsequent cash inflows, and therefore may serve as an incorrect criterion for the attractiveness of the project. The main advantages of static and dynamic indicators of investment project efficiency assessment are determined. It is noted that one of the main criteria of investment advantage of a project is profit maximization. Break-even analysis allows you to calculate the volume of sales at which the company's income equals costs. It is proposed to use the indicator modified internal rate of return (MIRR) It is determined that the most popular methods of assessing the effectiveness of the investment project today are the definition of such static indicators as simple rate of return, simple payback period and dynamic indicators, namely: discounted payback period, net present value, profitability index, internal rate of return and modified internal rate profitability. The most accurate results are given by dynamic indicators, as they take into account the value of money over time. Although dynamic methods are more accurate, all the considered methods of evaluating the effectiveness of the investment project have their pros and cons.

Methodical and applied aspects of fuzzy sets approach to considering uncertainty for a feasibility study of investment projects

The paper is devoted to the fuzzy sets approach to modeling uncertainty and risk during the feasibility study of measures for real investment that are planned and implemented as projects.The purpose of the study is to analyze, summarize and test fuzzy tools to support decision-making on real investment measures, which are planned and implemented in the form of projects. Initially, at the general level, the existing methodical apparatus for finding fuzzy estimates of performance indicators (criteria) of investment projects was analyzed.Then the issue of quantitative (numerical) characterization of fuzzy estimates of performance indicators of project investment measures in the context of aspects of chance and risk was considered. Within this framework, relevant characteristics (indicators) and methods of their measurement have been generalized.An example of approbation of the researched tools on the materials of the investment project for the purchase of filling and packaging equipment for a domestic enterprise specializing in the production and sale of coffee products is given at the end of the paper.The results of testing the fuzzy-ultiple toolkit of investment decision support on the materials of the investment project for the purchase of packaging equipment for a domestic enterprise specializing in the production and sale of coffee products, testified to the high level of its ability. It should also be noted that from the point of view of the needs of the modern scientific and practical field of economic substantiation of real investments, the development of the methodological apparatus for evaluating the economic efficiency of investment projects for situations of combined uncertainty of initial data is relevant.

Management accounting and analysis as tools to improve the investment efficiency in Russia

Subject. This article discusses the issues related to the development and implementation of investment projects in the face of difficulties in attracting investment in the development of sectors of the Russian economy, as well as problems related to strategic and tactical management. Objectives. The article aims to analyze problems related to the practical implementation of investment projects in Russia and identify their causes. The article also aims to identify ways to address the lack of the methodology of management decision-making and justification. Methods. For the study, I used the methods of statistical and systems analyses, and induction and deduction. Results. The article substantiates the need for management accounting and analysis approaches to improve the efficiency of investment projects in the Russian practice. It proposes legislative, methodological and institutional measures to put appropriate approaches into investment management in practice. Conclusions. Under the current circumstances, a management accounting and analysis methodology is required to address the challenges of improving the validity of investment projects and management decisions. The results of the study can be used in the development of legislative, organizational and methodological measures in the search and justification of options to improve the efficiency of investment management in the Russian practice.

"ЎЗБЕКИСТОН ТЕМИР ЙЎЛЛАРИ" АЖ ТИЗИМИДАГИ КОРХОНАЛАРНИНГ МОДЕРНИЗАЦИЯЛАШ ДАСТУРЛАРИНИ МОЛИЯЛАШТИРИИШ САМАРАДОРЛИГИНИ ОШИРИШ

This article analyzes the investment potential of the system of JSC "Ўзбекистон темир йўллари". Recommendations have been developed on how to increase the efficiency of investment projects in enterprises

INTENSIFICATION OF THE USE OF RENEWABLE ENERGY SOURCES – THE OBJECTIVE NEED TO IMPROVE RESOURCE CONSERVATION AND INCREASE THE COMPETITIVENESS OF PRODUCTION OF PRODUCTS OF THE AGRARIAN SECTOR OF UKRAINE

Purpose. The aim of the article is substantiation of theoretical bases of RES use and practical aspects of economic efficiency of various projects on use of solar energy depending on territorial conditions of the enterprises of agrarian and industrial complex of Ukraine as a factor of resource saving and energy efficiency. Methodology of research. Dialectical methods of cognition of processes and phenomena, economic, financial, comparative and monographic methods (for analysis and evaluation of the effectiveness of RES in different territorial conditions of Ukraine), are used to achieve this goal as well as abstract and logical method (for theoretical generalizations, conclusions). Findings. The efficiency of solar energy use in different territorial conditions of Ukraine is substantiated. The efficiency of projects under different scenarios of production of agro-industrial complex (drinking water) is calculated on the example of PJSC “Dobra Voda” of Zboriv district of Ternopil region. It is established that the most effective project for this enterprise in all studied production scenarios is a project with a capacity of 1 MW, the second place in terms of efficiency is occupied by a project with a capacity of 850 kW, in third place ‒ a project with a capacity of 700 kW, and the least effective is a project with a capacity of 585 kW. The economic efficiency of investment projects in the dynamics of 25 years using discounting methods was studied and it was found that the project with a capacity of 1 MW is the most effective in all scenarios of production at the enterprise. It is concluded on the basis of an in-depth study of the effectiveness of existing projects in different territorial conditions of Ukraine that these projects for the use of solar energy in the eastern and southern regions of the country may have better performance indicators of economic efficiency 1.5-2 times. Taking into account the experience of the EU-28, it is substantiated that in Ukraine, which has a strong biological potential, the priority should be to accelerate the development of bioenergy, which will increase RES and on this basis to replace gas and oil, reduce production costs, improve its competitiveness; to clean the environment in all regions of the country; increase the number of jobs and improve the social and economic living conditions of the population. Originality. Theoretical approaches to the assessment of economic efficiency of projects of different capacity for the use of solar energy according to the options that take into account the territorial features of their implementation at the enterprises of the agro-industrial complex of Ukraine are substantiated. Practical value. The main provisions and conclusions set out in the article contain methodological and practical recommendations for the formation of a system of resource conservation and the use of renewable energy sources at enterprises. Key words: resource saving, energy efficiency, renewable energy sources, solar energy, wind energy, biomass energy, hydropower, efficiency, competitiveness.

EVALUATION OF THE INVESTMENT PROJECT FOR UPDATING THE ROLLING STOCK FOR THE ORGANIZATION OF GRAIN CARGOES RAIL TRANSPORTATION

Purpose. The aim of the work is to develop a feasibility study for an investment project to upgrade rolling stock for the organization of grain rail transportation, as well as assess the effectiveness and possible risks of implementing such a project. Methodology. In the research process, analysis and synthesis methods were used to study the content and main provisions of scientific publications on the state and prospects of the development of the fleet of wagons for grain transportation; methods of technical and economic calculations to determine the effectiveness of investment projects to upgrade the fleet of grain wagons. Results. Ukraine is a major producer and exporter of grain, whose production and export volumes are growing annually. The main carrier of grain products is railway transport, carrying out transportation by grain wagons. In recent years, the fleet of grain carriers has grown significantly, but the key problem is the significant level of deterioration of rolling stock - 85%. Calculations showed that by 2020, to master the promising volumes of grain transportation, it is necessary to upgrade to 11.5 thousand cars. Given the low rate of renewal of the Ukrzaliznytsia’s grain tank fleet, investment projects to upgrade rolling stock for grain transportation are very promising for private companies. A comparative analysis of the economic efficiency of various investment projects for updating the fleet of grain carriers showed that projects based on leasing agreements are more profitable for leasing cars, and for the organization of transportation of their own grain products - the purchase of cars at the expense of companies. Scientific novelty. The results of the study allow us to draw up a scientific and economic justification for assessing the effectiveness of investment projects to upgrade rolling stock for the organization of rail transportation of grain products. Practical significance. The calculations showed that projects for the purchase of new grain wagons, both for leasing and for transporting own grain products, are cost-effective and also represent a promising area of investment for private companies. Implementation of such investment projects will allow to load the car-building capacities of Ukraine and create new jobs in various industries.

OPTIONS METHOD FOR OIL EXPLOITATION INVESTMENT PROJECT EFFICIENCY EVALUATION UNDER RISK CONDITIONS

In this work modern methods of investment project efficiency evaluation were studied, advantages and disadvantages of using the real option model were shown in comparison with the DCF model. It is proved that a rainbow option is an effective valuation tool in conditions of high oil prices volatility and low study of reserves and resource. Two stages may be identified: mineral exploration and maintenance work. Black-Scholes model was used for option pricing.

Проецирование эволюционной трансформации идеализма на базовые методологические подходы оценки экономической эффективности проектов

The article studies theoretical and methodological approaches of subjective and objective idealism, General scientific subjective and consumer methodological approaches, analyzes the scientific positions of economic schools of mercantilism and marginalism, considers the views of the economic school of physiocrats, the ideology of objective rationalism of classical political economy. In the course of theoretical research, the process, tendency and regularity of transformation of the main principles of subjective and objective idealism into the basic characteristics of consumer and system methodological approaches, which are the basis for evaluating the economic efficiency of investment projects, are established.

Экономические измерения сегодня (учебное пособие) (Economic Measurements Today: A Textbook)

This is February 2020 book draft on the subject of Economic Measurements. It introduces the subject matter as well as provides coverage and discussion of the 4 principal areas in the discipline of Economic Measurements: the Investment-Financial Valuation, the Professional Valuation, the Assessment of Efficiency of Investment Projects, as well as the Accounting Measurements. Some structural highlighths of the book are as follows: -the subject of Accounting Measurements introduces the discussion of procyclicality of fair values and identifies 2 positive-feedback contours of such procyclicality. - the Subject of Professional Valuation is treated through the prism of valuation bases introduced by the International Valuation Standards (IVSs) using a Venn-diagramatic approach tool; a discussion of theoretical advancements within the Professional Valuation is organized on the basis of TAPA (the Transactional Asset Pricing Approach developed by Dr. V. Michaletz and the author) and some aspects of historic and insitutional analysis. -Some areas of business valuation are covered in a discussion of the Investment-Financial valuation, including its going-concern premise, and the need to incorporare an explicit accountal for the default risks. The book's organizing idea is in discussing the often-elusive nexus between the money and value and treating market prices as an admixture of fundamental components and liquidity effects.

REVIEW OF THE STATE AND PROSPECTS OF ENERGY ANALYSIS DEVELOPMENT

The article provides an overview of the terminology, methods, goals and objectives of energy analysis, aswell as methodological approaches to its implementation. The reasons for the limited use of energy analysis inUkraine are identified: the use of balance models is limited by the lack of statistics on intersectoral balance, andthe analysis of the process by the complexity of the calculation models. The structure of total energy intensity isproposed. It is noted that in estimating energy costs for imports of energy and products, it is necessary to use theenergy equivalent of the currency, taking into account all foreign currency revenues. It is determined that the furtherdevelopment of energy analysis using the process analysis approach requires refinement of the methodologyproposed in DSTU 3682-98 and GOST 30583-98 by developing adequate simplifying assumptions and reducing thecomplexity of the calculation models. Improvement of this technique will increase the efficiency of energy analysisof investment projects, foreign economic relations, plans for economic development of the country, functioning ofthe economy and individual production processes, as well as expand the scope of energy analysis.

Politika javnih investicija u Srbiji usmerena na podsticanje rasta - više i efikasnije

In the last few years Serbia has restored its macroeconomic stability, primarily due to successful fiscal consolidation, but economic growth remained insufficient for faster convergence with other European countries. One of the reasons for sluggish growth is related to low domestic private and public investment. From 2001 to 2018 public investment in Serbia amounted to 2.6% of GDP on average, which was the lowest in Central and Eastern Europe (CEE) and the Western Balkans (WB). Although its public investment has risen in the last few years, Serbia is still lagging behind the CEE and WB countries in that respect, especially in terms of the local self-government investment. In that period, cumulative public investment in Serbia was lower than the CEE average and WB average by 33% of GDP and by more than 40% of GDP, respectively, although total government expenditures in Serbia were rather large. Due to many years of severe underinvestment, the total public capital stock (per capita) in Serbia is the lowest in CEE and the WB region, which is why Serbia is among the three lowest ranked countries in terms of the overall quality of infrastructure in CEE and the WB. The public investment policy may yield significant positive impact on future growth in Serbia, provided that the following two conditions are met: i) public investment increases to 4-5% of GDP and remains at that level in a fiscally sustainable manner for at least a decade, ii) the efficiency of investment projects, in terms of selection, contracting, implementation and supervision, is significantly improved.

ЭКОНОМИКО-МАТЕМАТИЧЕСКИЕ И ЛОГИКО-ЭВРИСТИЧЕСКИЕ МОДЕЛИ ПРИНЯТИЯ РЕШЕНИЙ: НЕОСИСТЕМНЫЙ СИНТЕЗ

The article discusses approaches to assessing the systemic efficiency of large-scale institutional and investment projects with a high degree of uncertainty in their parameters. A hybrid assessment model is proposed, which includes a network model of a complex of operations that reflects the investment and construction process of creating a public property unit. The network model is formalized in two versions – as a deterministic network model and as a cyclic alternative one, which allows taking into account the probabilistic nature of the construction technology and find the best options for allocating resources for work, taking into account transaction costs.

Investment Management of Business Digital Innovations

This paper considers the issue of investment management of digital innovations in modern business. The main purpose of the research is the development of approaches to the investment management of the innovative digitalisation processes of the enterprises and justification of the economic efficiency of investment projects on innovative information technologies use in the context of their relationship with existing information solutions for enterprise management. The relevance of the research is the necessity to change the methods of doing and managing the modern business, taking into account the achievements of the Third and Fourth Industrial Revolutions, which form innovative business philosophy based on informatisation and digitalisation of manufacturing and delivery processes. The implementation of innovative digital technology in business processes requires significant costs and it raises the issue on their minimization. Systematization of literary sources and approaches for the investment management of industrial digitalisation indicates the absence of complex solutions for this problem. In this regard, based on a comparative analysis, the authors have revealed the features of business development in the conditions of the Fourth Industrial Revolution and justified the need for modern information systems integration for enterprise management on the platform of business processes digitalisation. In order to create the road map of business digital innovations, it is suggested that the Theory of Constraints should be used to determine which of the operating information systems of the enterprise (Business intelligence – BI; Enterprise Resource Planning – ERP; Manufacturing Execution System – MES; Industrial Internet of Things – IIoT) is to begin the digital transformation with. The stages of the project development for the digital transformation of an enterprise are designed based on the structural approach. The economic justification for the selection of alternative digitalisation projects is based on an assessment of the labour costs for implementing two variants of digital innovation of a business entity: a complex automation project with up-front modelling and an integration automation project with the gradual implementation of a new information system. The assessment results have shown the economic benefits of implementing the integration project as it provides 1.58 times fewer labour costs and can be realized by use of universal package solutions such as Business Automaton Software (BAS). The analysis of the results of the implemented business digitalisation projects in Ukraine and the world as well as the potential of planned ones has allowed generalising the effects of their implementation and confirmed the need for further development of the mechanisms for the investment management of business digital innovations. Keywords automation, business, digitalisation, efficiency, greening, ERP, information technology, innovation, investment management, project.

Ways to improve the efficiency of investment projects in construction

Ways to improve the efficiency of investment projects in construction

Problems in the Assessment of Large-Scale Projects

This paper analyzes problems revealed by practice of implementation of large-scale projects (megaprojects). It discusses features of large-scale projects, namely, their impact on the whole economy and high uncertainty regarding conditions of their implementation, as well as possibilities of the standard approach to assessing social efficiency of investment projects to adequately take account of these features. Some ways to solve the problems under consideration are proposed.