Revenue Estimates Research Articles

Investor Perceptions of the Corporate Alternative Minimum Tax

The Inflation Reduction Act establishes a new 15% corporate minimum tax on the adjusted financial accounting income for large U.S. corporations. Although the minimum tax is estimated to raise $222 billion over 10 years, some fear firms will manipulate their accounting earnings to reduce their tax liabilities, resulting in less revenue raised. Using an event study, we examine the extent to which investors believe this tax will reduce firm value. We examine stock market reactions around key legislative developments leading to the enactment of the book minimum tax. Our findings show targeted firms experience significantly lower stock returns than nontargeted firms during the enactment process (about 1.4%–1.8% of firm value). In aggregate, our findings are consistent with the Joint Committee on Taxation’s revenue estimates. In cross-sectional tests, we fail to find evidence that firms most likely to avoid the tax via earnings management experience more positive returns. We also fail to find less negative returns for firms most likely to pass on the tax to consumers. Overall, our results suggest investors do not expect firms to avoid this tax. Instead, they appear to expect a significant portion of the corporate minimum tax to be remitted by firms and borne by shareholders. This paper was accepted by Ranjani Krishnan, accounting. Funding: F. B. Gaertner acknowledges support from the Cynthia and Jay Ihlenfeld Professorship, M. Pflitsch acknowledges support of a postdoc fellowship of the German Academic Exchange Service (DAAD), S. O. Kelley gratefully acknowledges support from the James L. Henderson Chair, and J. L. Hoopes gratefully acknowledges support from the Harold Q. Langenderfer fellowship. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2024.04750 .

Productivity and economic performance of Nellore young bulls fed diets with increasing fiber content.

Adequate neutral detergent insoluble fiber (NDF) content in the total diet can improve intake efficiency, prevent rumen disorders, and enhance the health and performance of feedlot-finished beef cattle. We hypothesized that an increase in dietary fiber levels would decrease the productive performance but increase the economic performance of young bulls in confinement. Thus, it was aimed to evaluate the effect of increasing fiber levels on feed intake, wastage, and productive and economic performance of Nellore young bulls finished in confinement. We used 20 Nellore cattle, non-castrated males, 30 months old, and average body weight (BW) of 416.35 ± 2.2kg distributed in a completely randomized design, kept in individual stalls. Animals were divided into four treatments consisting of four levels of neutral detergent insoluble fiber (NDF) (25%, 30%, 35%, and 40% NDF) in total DM. Nutrient intake, feed conversion, feed waste, body weight (BW) at slaughter, total weight gain (TWG), average daily gain (ADG), hot carcass weight (HCW), and carcass yield (CR) were evaluated. In addition, economic parameters (revenue, food expenses, and gross margin) were calculated and compared. The dry matter (DMI), organic matter (OMI), crude protein (CPI), and ether extract (EEI) intakes showed quadratic behavior. The DMI maximum estimated was 28.5% NDF in the diet. The NDF and ADF intakes showed a positive linear effect and the starch intake had a negative linear effect. There was a significant positive linear effect (P < 0.05) for the variables total mixed ration (TMR) offered and daily and total RTM intake. Minimum RTM wastage was estimated with a diet containing 30% NDF. The maximum points for BW at slaughter, HCW, and ADG were 29.9%; 29.6%, and 25% NDF, respectively. The costs of concentrate and silage showed a positive linear behavior, as did the ADG costs and the carcass equivalent cost (P < 0.05). The maximum point of the revenue estimate (US$/animal) was 29.9% of NDF, 26.1% of NDF for the total expenditure on food (US$/animal), and 32.5% of NDF for the gross margin (U$/animal). In conclusion, the animals fed a 30% NDF diet showed the best performance and economics, in addition to less food waste. We recommend 25 to 32.5% of NDF in the diet to obtain maximum productive and economic performance when finishing Nellore young bulls in confinement.

Analysis and Box Office Prediction of Chinese High Box Office Films- Empirical Analysis Based on the Top250 Movies on Maoyan.com

This project focuses on analyzing and predicting box-office performance using data from Maoyan.com. Several key factors, including release year and month, ticket price, movie duration, and the proportion of positive reviews, are examined for their influence on box-office revenue. We begin by employing simple linear regression to investigate the relationship between Maoyan.com ratings for the top 250 movies and their box-office performance. Additionally, we construct an Autoregressive Distributed Lag (ARDL) model to assess the impact of these factors over time. The model parameters are estimated using the least squares regression method, and the Mean Absolute Percentage Error (MAPE) is minimized to achieve optimal prediction accuracy. Extensive data cleaning and preprocessing ensure the reliability of our analysis. The findings from this study provide valuable insights into the determinants of box-office success and offer a robust predictive model for future revenue estimation.

Tax revenue from Pillar One Amount A: country-by-country estimates

AbstractThis paper presents first-round simulations of the tax revenues arising from the Pillar One Amount A proposal of the G20/OECD inclusive framework on base erosion and profit shifting for 2016–2025. Amount A aims at revising taxing rights on multinational enterprises with at least €20 billion in revenue and profitability above 10%. We consider the latest available Pillar One Amount A rules as detailed in the “Multilateral Convention to Implement Amount A of Pillar One” (OECD 2023b). In a first step, we identify the multinationals that would be “covered” under Pillar One Amount A. Then, by combining micro and macro data sources, we create a database that approximates these Covered Groups’ worldwide distribution of destination-based revenues, profits, employees, and tangible assets. Destination-based revenues serve to reallocate Amount A profits across jurisdictions. Finally, we account for double taxation relief to obtain country-level net revenue estimates from Pillar One Amount A. The aggregate additional tax revenue arising from Pillar One Amount A varies from €5.7 billion in 2020 to €10.9 billion in 2022. We provide country-specific estimate ranges and a comparison to digital taxes. The trade-off between Amount A and digital taxes is unclear and may vary from one country to another. Testing for the implications of various provisions of Amount A rules, we observe that the extent of taxing rights redistribution is seriously affected by the Marketing and Distribution Safe Harbour (MDSH), while the profit reallocated to low and lower-middle-income jurisdictions crucially depends on the tail-end revenues provision.

The Influence of Earnings Management on the Value Relevance of Accounting Information

This research aims to investigate the influence of earnings management practices on the value relevance of accounting information in the Indonesian business environment. The research method used is qualitative with a library study approach and document content analysis. Data was obtained through in-depth interviews with related parties such as auditors and financial managers, as well as analysis of the contents of documents in the form of financial reports and company meeting notes. The research results show that earnings management practices can reduce the value relevance of accounting information by affecting the quality of information conveyed in financial reports. Practices such as increasing revenue estimates or delaying expense recognition can cloud the picture of a company's true performance, which in turn affects economic decision making. These findings emphasize the importance of transparency and integrity in accounting practices to maintain the value relevance of accounting information for stakeholders. The implication of this research for accounting theory is the need to pay attention to earnings management practices within a broader theoretical framework regarding the integrity of accounting information. From a practical perspective, companies need to increase awareness of the importance of honest accounting practices and comply with applicable standards to minimize unethical earnings management practices. This implication is also relevant for regulators in strengthening regulations related to financial reporting in order to maintain the integrity of the capital market in Indonesia.

Improvement of financial results budgeting in the CSR contents

Budgeting for financial results has traditionally been considered the preparation of cost and revenue estimates with responsibility centers in an organization. However, currently it covers a wider range, taking into account not only the internal but also the external value chain of the business. Currently, the value of organizations is not only evaluated by financial indicators, but also takes into account the responsibility of business from the point of view of ensuring public interests. The article makes recommendations for budgeting improvement of financial results, based on the requirements of companies corporate social obligations.

Increased Taxes and Regulation of Indian Cigarillos (Bidi) Industry: Effects on Revenue and Years of Life Lost.

Indian cigarillos (bidi) are low-cost alternatives to cigarettes with only 22% imposed taxes, and turnover of up to INR 4 million per annum exempted from taxation. This paper estimates revenue implications and potential loss of life years (YLLs) averted if the bidi industry is subjected to increased regulations and taxation. Revenue estimates at 10% increased regulation and 100% regulation were calculated, followed by estimates at taxes equivalent to cigarettes and World Health Organization-Framework Convention on Tobacco Control (WHO-FCTC) recommendation. Price elasticity was considered to assess demand. Price changes in separate fractions (previously regulated and unregulated) were calculated to obtain potential YLLs averted. Current revenue of USD 59.25 million is projected to increase to USD 179.25 million with 695 159 averted YLLs at cigarette equivalent taxes and 10% increased regulation; USD 639.38 million with 4 527 597 averted YLLs with 100% regulation; USD 54.75 million, at WHO recommended taxes with 2 233 740 YLLs averted at 10% increased regulation, and 10 486 192 YLLs at 100% regulation. Proposed estimates are in line with WHO recommendations as they consider price elasticity and suggest a substantial increase in revenue while averting YLLs. A national action is needed to drive the policy decisions towards increased regulation and taxation and revision of India's tobacco control legislation. Our study presented empirical evidence of how the currently underutilized tool of taxation, as proposed in the WHO-FCTC, can be utilized to decrease bidi smoking prevalence and save measurable life years while generating government revenue simultaneously. While the revenue statistics counter the misleading tobacco industry narratives, the projected reduction in mortality will be seen as an irrefutable driving force for policy reforms, targeted at the strategic increase in regulation and taxation of the traditional Indian cigarillos industry.

Profit-optimal data-driven operation of a hybrid power plant participating in energy markets

An energy management system (EMS) is formulated for a hybrid power plant (HPP), consisting of a wind power plant and battery storage plant, participating in bidding stages in the German energy market. The EMS utilizes supervisory control and data acquisition (SCADA) measurements from the site to improve power forecast from the wind power plant. First, the measurement data are used together with numerical weather prediction data to accurately forecast local wind conditions. Second, the measurement data are used to adapt a baseline engineering wake model that gives the total wind power generation for a given input wind condition. The EMS also uses an online cyclic damage minimization approach to accurately balance the battery damage cost against the revenue obtained by market bidding. An HPP controller is formulated to ensure proper tracking of optimal set-points. When compared with standard formulations, the proposed approach shows an accurate estimation and balancing of revenue and costs and a significant reduction in the power deviation penalty, which leads to significantly higher overall profit.

Revisiting the novelty effect from new stadiums: An event study approach

AbstractThis analysis examines the impact of new stadiums on consumer demand for sports spectatorship in the four major US‐based professional sports leagues. Estimates from difference‐in‐differences event studies identify a transitory attendance shock from new venues that diminishes to pre‐stadium‐treatment levels within a decade. The updated estimates confirm the existence of the novelty effect in modern facilities and identify subtle differences in magnitude, certainty, and duration across leagues. Revenue estimates indicate that the substantial financial returns from constructing new stadiums likely incentivize the premature replacement of host venues when combined with typical public subsidy levels.

Energy markets restructure beyond 2022 and its implications on Qatar LNG sales strategy: Business forecasting and trend analysis

The emergence of new suppliers and energy resources has reshaped the energy market in terms of contractual structures and pricing systems. The market shifts were accelerated in response to the latest Russian-Ukraine crisis, impacting natural gas supply chains from financing projects to contracting volumes. The increased demand for liquified natural gas volumes intensified the need to switch from long-term oil-indexed contracts to short-term gas-indexed contracts. Those shifts were anticipated to influence the selling strategies for the expected added 49 MTPA of Qatari LNG, wherein increasing the share of spot selling would be reflected in higher economic performance. This study used forecasted prices to investigate potential Qatari LNG selling strategies. Initially, projections of the most dominant pricing systems used for pricing Qatari LNG (i.e., brent, Henry Hub, Title Transfer Facility, and Japan Korea Marker) were estimated between 2023 and 2040. While Qatar has been relying on long-term oil-indexed contracts, the second step estimated annual LNG revenues under different combinations of selling strategies (i.e., long-term and spot sales). Finally, the influence of varying brent slopes on the estimated revenues was measured. Due to data limitations and non-stationarity, the double exponential smoothing model was selected among the different tested models. Considering current market dynamics, forecasts of the double exponential smoothing model showed an upward price trend until 2040. An annual average increase of 1.24% for the studied pricing systems was reported. Reducing the share of long-term brent-indexed contracts to 70% and dedicating the remaining 30% of volumes to spot sales yielded the highest premiums for revenue estimates. An average annual revenue of $62 bn was reported for the 70/30 strategy, around 6% higher than the 100% brent-indexed contracts strategy. The findings revealed that diversifying the selling approach and introducing spot sales can enhance revenues. From the buyers’ perspective, the outcomes support policymakers in understanding the implications of escalated prices driven by a lack of liquidity investments.

Estimate of the revenue and economic contribution of the professional pest management industry in Georgia, United States.

The Professional Pest Management Industry (PPMI) dates back over a century in the United States. Stakeholder calls for economic studies of the PPMI include, in the 1980s, the National Research Council, although there has been little to no progress on that topic. US Census and Bureau of Labor Statistics data indicate that revenue and employment for the PPMI in Georgia increased 117% from 1997 to 2021. We determined the revenue, employment, and economic contributions for the PPMI in Georgia, United States, using 2 methodologies applied to IMPLAN: primary survey data in combination with an open records request and publicly available Federal Economic data. Estimates of average revenue for the Georgia PPMI in 2021 were $833-$988 million, using the survey/open records and publicly available data, respectively. We utilized an economic modeling program, IMPLAN, to estimate the economic contributions by the Georgia PPMI in 2021 to be between $1.7 and $2.0 billion, with 13,000-14,000 jobs for the 2 respective data sets. We describe the methods and provide tutorials for other states or national organizations to follow to generate justifiable, comparable economic information on the PPMI. In addition, we discuss the unique position of the PPMI as heavily regulated by State Departments of Agriculture to advocate for including the PPMI economic values when reporting agricultural economic contributions.

Improving Anesthesia Start Time Documentation Through a Departmental Education Initiative at Yale New Haven Hospital, New Haven, United States.

Background Reimbursement for anesthetic services in the United States utilizes a formula that incorporates procedural and patient factors with total anesthesia time. According to the Centers for Medicare & Medicaid Servicesand the American Society of Anesthesiologists, the period of billable time starts when the anesthesia practitioner assumes care of the patient and may include transport to the operating room from the preoperative holding area. In this report on a quality improvement effort, we implemented a departmental education initiative aimed at improving the accuracy of anesthesia start-time documentation. Methods Utilizing de-identified, internal data on surgical procedures at Yale New Haven Hospital (YNHH), New Haven, United States, the difference between documented anesthesia start and patient in-room time was determined for all cases. Those with a difference between 0-1 minute were assumed "likely underbilled," and the total revenue lost for these cases was estimated using a weighted average of institutional reimbursement per unit of time. A monthly, department-wide educational email was then introduced to inform practitioners about the guidelines around start-time documentation, and the percentage of "likely underbilled" cases and lost revenue estimates trended over a one-year period. Results Baseline data in December 2020 showed that of the 6,877 total surgical cases requiring anesthesia at YNHH, 55.1% (N=3,790) had an anesthesia start to in-room time of 0-1 minute, which were considered "likely underbilled." The average start-to-in-room time for properly recorded cases (44.9%, N=3,087) was 4.42 minutes. The baseline revenue lost in December 2020 for underbilled cases was estimated at $52,302. Over the one-year quality improvement initiative, the proportion of underbilled cases showed a downward trend, decreasing to 29.2% of total cases by November 2021. The estimate of revenue lost due to underbilling also showed a downward trend, decreasing to $29,300 in November 2021. Conclusion This quality improvement study demonstrated that a relatively simple, department-wide educational email sent monthly correlated with an improvement in anesthesia start-time documentation accuracy and a reduction in estimated revenue lost to underbilling over a one-year period.

Student Opposition to University Pouring Rights Contracts

IntroductionThe majority of large public universities have exclusive pouring rights contracts (PRCs) with beverage companies that produce and market sugar-sweetened beverages (SSBs). PRCs contain provisions that conflict with recommendations from major public health organizations that institutions reduce SSB availability, marketing, and consumption. This study assessed the following among students at 3 public universities: student perception of PRCs–the extent to which they favored or opposed PRCs, the association between student socioeconomic characteristics and perception of PRCs, student estimates of PRC revenue, and the association between student PRC revenue estimates and perception of PRCs. To contextualize results, actual PRC revenue as a percent of total revenues was estimated. MethodsA cross-sectional exploratory study was conducted among a convenience sample of 1,311 undergraduate SSB-consuming students recruited from 3 large and diverse public universities in Northern California. On an online questionnaire, undergraduate students indicated the extent to which they favored or opposed PRCs on a 10-point scale (oppose=1-5, favor=6-10) and provided a numeric estimate of the percentage of total university revenue they thought their university's PRC generated. Regression models were used to analyze differences in perception of PRCs by student socioeconomic status and estimates of university revenues generated by PRCs. Additionally, PRCs and financial reports were obtained from the 3 universities to estimate actual PRC revenue as a percent of total revenues. Survey data were collected between August and November 2018 and analyzed August 2022. ResultsA large majority of students (81%) opposed PRCs, and opposition did not significantly differ by student socioeconomic status, including by levels of food security, need-based financial aid, participation in federal food assistance or healthcare programs, parental education, or parental income (all p-values > 0.14). The median student estimates for PRC revenue as a percentage of total university revenue was 10%. In contrast, the estimated actual annual revenue generated from the PRCs ranged from 0.01-0.04% at these schools. Revenue estimates were not significantly associated with participants’ opposition or favoring of PRCs (p = 0.65). ConclusionsA large majority of students opposed PRCs, and this opposition was similar regardless of student socioeconomic status or student estimates of PRC revenues. Students markedly overestimated (by >100-1000-fold) the percentage of university revenue that came from PRCs. University administration should consider student views on PRCs when deciding whether to exit or continue with PRCs.

Factors influencing US equity-crowdfunded companies’ ability to survive

ABSTRACT This study investigates the factors being associated with equity-crowdfunded companies’ likelihood of survival in the US. We focus on factors observable to crowdinvestors, either being set by entrepreneurs (signals) or being non-alterable (determinants), at least in the short run. Such observable factors at the time of crowdinvesting include company and campaign characteristics, growth potential, and company riskiness. Cox proportional hazards model is used on a sample of 429 US equity-crowdfunded companies. We find that 89% of the companies survived for a minimum of three years after a successfully funded initial equity offering. This survival rate is around ten percentage points higher than in Europe. We document that equity retention, funding goal, and current year revenue estimate are associated with the likelihood of building an enduring business. Higher proportion of equity offered to crowdinvestors signals lower investment quality and thus lower probability of survival. In contrast, companies with higher funding target and current year revenue have better prospects for survival after a successful equity offering. The funding goal affects the probability of survival through the capital intensity channel; if a company in a capital intense industry has been successfully funded, the threat from the competitors is lower given the high entry barriers.

Orphan Drug Label Expansions: Analysis Of Subsequent Rare And Common Indication Approvals.

The Orphan Drug Act of 1983 was enacted to provide financial incentives to stimulate drug development for rare diseases. In recent years, concerns have been raised regarding these orphan drugs, including how many are being approved for both rare and common diseases and the number of subsequent indication approvals. Policy makers have suggested modifications to the Orphan Drug Act's incentives to address these concerns. In this study we investigated the approval "family trees" of orphan drugs. We found that 491 novel orphan drugs were approved between 1990 and 2022. To date, 65percent have been approved for a single rare disease, 15percent have been approved for multiple rare diseases, and 20percent have been approved for both rare and common diseases. Ten percent of orphan drugs received a subsequent indication approval for a pediatric population of an orphan disease. Revenue estimates from 2021 show that one-third of the drugs approved for both rare and common indications and 6percent of rare-only drugs were among the 200 top-selling drugs worldwide. The results have implications for the possible externalities of modifying the incentives of the Orphan Drug Act, such as a potential decrease in the initiation of programs to develop pediatric rare disease drugs.

Revenue Relation with VAT in Nepal Government Budget Structure

Taxes are major fiscal policy instruments and important government policy tools have an important role in increasing the rate of capital formation and thereby a high rate of economic growth can be achieved. Globalization, privatization and liberalization have brought the huge change in the country budget and economic environment. The budget management of government is one of the important tasks which play very important role in the nation and international environment which influence the technology and changing business environment has posed many challenges before management. This study aims to find out the Nepal government budget status in economic sectors. Descriptive research has been conducted using annual report of economic survey of ministry of finance. Descriptive analysis suggested that is strong relationship between revenue and expenditure management of Nepal government budget. The main objective of this study is to determine the relationship between revenue and expenditure in the study made over the period 2073/74 to 2077/78 taken as a sample year in this research study among the various fiscal years of Nepal government budget. The statistical methods of trend analysis and descriptive statistics like mean, standard deviation, coefficient of variation and hypothesis test were used to analyze the study outcomes.&#x0D; The results of the study indicated the revenue, expenditure and deficits conditions of Nepal government budget. This research articles report sources of revenue and structure of budget heads of Nepalese economic sector. It also reflects the whole revenue and expenditure positions of Nepal government and effective implementation of revenue estimation to manage deficits conditions. The revenue, expenditure and deficits conditions policy and strategies would also helps to manage deficits conditions by research studying.

Profit-based unit commitment models with price-responsive decision-dependent uncertainty

Highlighting the increasing importance of demand elasticity in electricity markets and its impact on the revenues of power generating companies, this paper proposes new profit-based unit commitment models that effectively capture the uncertainty in the willingness-to-pay the price set for the elastic demand. To develop a new revenue scheme for power generating companies, we use a coupling function to model the willingness-to-pay response of the elastic demand as a decision-dependent source of uncertainty. The coupling function reflects how power generating companies’ pricing decisions may influence the market appeal (i.e., the buyer’s willingness-to-pay) and how it affects their revenues. The optimization models are stochastic mixed-integer nonlinear problems with nonconvex continuous relaxations and are not amenable to a numerical solution in their original forms. We devise a convexification reformulation method and derive valid inequalities to strengthen the formulation. We propose a learning framework to parameterize the willingness-to-pay functions and the concept of the value of the decision-dependent solution to quantify the value of the uncertainty modeling approach. Numerical tests on power systems of various sizes, demand portfolios, and price elasticity levels show (i) how the valid inequalities speed up the solution process, (ii) the benefits of properly modeling decision-dependent uncertainty and demand elasticity, and (iii) how the incorporation of decision-dependent uncertainty in demand elasticity can change the power generating companies’ decisions and revenue estimation.

Proposal of a Model for Water Usage: Revenue Estimation in Brazil Hydrographic Basin

In order to improve the quality of aquatic ecosystems, a water collection instrument was established in the National Water Resources Policy (PNRH), with the purpose of collecting and allocating resources to the management of water systems, as well as stimulating the conscious and efficient use of water, with the direct finality of reducing the rates of waste and pollution of water sources. This instrument guided the definition of the objective from the present research, which is to estimate the collection of the Pianco-Piranhas-Açu Basin, located between the State of Paraiba and Rio Grande do Norte, to be calculated with a mathematical model of collection by the multiple water uses that consider volumes consumed, captured and for the discharge of effluents. To do so, it was analysed the main collection models adopted in Brazil to finally define the best algorithmic basis. Analysing the results, it was observed that the planned resources still do not provide a sustainable application of the real situation of the analysed basin, requiring further research to better understand the peculiarities of the region, given that the estimated collection is insufficient to provide the necessary infrastructure for Pianco-Piranhas-Açu (Brazil) river’s basin management system. Therefore, this situation serves to alert public water management bodies about the modelling to be used and the urgency of implementing the charging instrument, given that it could improve the quality of the hydrographic basin studied.

Relocation incentives for ride-sourcing drivers with path-oriented revenue forecasting based on a Markov Chain model

Proper positioning of ride-sourcing drivers may improve vacant travel times, waiting times, and matching opportunities. Herein, we evaluate the potential repositioning response of drivers when provided guidance based on estimates of their earnings in a system offering ride-hailing (solo) and ridesplitting (shared) rides. Therefore, we develop a strategy that enumerates the best regional repositioning destination based on the expected number of requests a driver will encounter during the forecast horizon. A mixed continuous-discrete time Markov Chain (MDCTMC) is developed to predict a driver’s activities and the associated revenues. In summary, the developed strategy provides a group of drivers with individualized near-future revenue estimates guiding drivers toward repositioning decisions that are more likely to maximize their earnings. Our main findings indicate that if the operator selects only a fraction of active drivers to provide guidance, these are likely to expect higher earnings than those without guidance. We also show that it manages to decrease the number of unserved requests compared to several state-of-art benchmarks while increasing vehicle occupancy and decreasing the deadheading.

Estimating Investment Project Revenue and Expenditure in Telecommunication Sector

The article studies the process of estimating investment project revenue and expenditure in telecommunication sector, illustrated by the public company ‘MTS’: key technologies of data transfer, their correlation with frequencies, structure of expenses on network building, approaches to estimation of project revenue. The author identified types of investment projects in view of different approaches to their evaluation: qualitative projects, which do not cause direct rise in profits and quantitative ones, whose estimation is possible by present value of cash flows. Advantages and drawbacks of the current approach to estimation of ‘MTS’ projects were formulated. The article shows technical and economic indices that can impact project efficiency and seriously change its recoupment. The author proposes to include costs of the network development not only of the access level but also of the level of aggregation and network core; to extend the horizon of planning network quality indices for the whole period of the project; to take into account costs of the future extension of network capacity during project implementation; to carry out modernization of the equipment in case of its technical support termination and output of components. With regard to discontinuity of network modernization steps it is necessary to account for the effect of growing quality of services above the target indicators.