Evaluation Of Investment Projects Research Articles

Features of the assessment of socio-economic effects arising from the construction of lines of freight maglev transport

Background: Transport is a sector of the economy that is subject to general economic laws, including with regard to issues related to investing in real assets, developing means of production, and ensuring expanded reproduction. Along with this, transport is a strategic sector at the state level, ensuring the functioning of the economy as a whole. In this regard, there are certain contradictions associated with the assessment of the effectiveness of investments in transport infrastructure. In most cases, investments in transport infrastructure are valued similarly to investments in a business project. After the issuance of Decree of the Government of the Russian Federation No. 1512 dated November 26, 2019, the approach to evaluating the effectiveness of investments with state participation has expanded, but it does not fully cover the issues of project effectiveness for the state. Along with this, the classical methods for evaluating the effectiveness of investment projects are subject to great subjectivity in relation to the calculation of social effects, as a result of which their applicability to projects at the national economic level is ineffective.
 Aim: to consider the list of effects arising from the construction of transport infrastructure and determine the methodology for calculating the effects for the state.
 Materials and methods: the research methodology is based on the analysis of methods for financial and economic evaluation of investment projects, as well as macroeconomic methods. The information base of the study is based on the official legal and methodological information of the authorities of the Russian Federation.
 Results: as a result of the study, a list of effects for the state arising from the implementation of transport infrastructure development projects was determined, and the procedure for their calculation was substantiated.
 Conclusion: the study confirms that the currently used methods for evaluating the effectiveness of investments in infrastructure projects for the state do not fully and objectively reflect economic realities. The proposed approach to the assessment will make it possible to carry out a comprehensive assessment of the socio-economic effects from the construction of cargo maglev transport lines and improve the quality of management decisions in the transport sector.

Comparative life cycle cost-energy and cumulative exergy demand of paddy production under different cultivation scenarios: A case study

The use of energy efficient in agriculture is one of the important factors to achieve sustainable production in agriculture. Considering the limited resources and the importance of preventing the loss of resources, it is necessary to evaluate investment projects from an economic point of view This study applying life cycle assessment (LCA) of paddy production in Khuzestan province of Iran were studied, LCA is a methodology for assessing environmental impacts associated with all the stages of the life cycle of a commercial product, process, or service. In this study, energy indicators, economic analysis and LCA of paddy production in Khuzestan province of Iran were studied. Paddy production in this province was analyzed under three scenarios of multiple cultivation system including (Paddy-Transplantation System) PTS, (Paddy-Flooding System) PFS and (Paddy- Drying System) PDS. The highest total input (79069.80 MJ ha−1) and output (105400 MJ ha−1) energies are related to PTS method. PDS method has the lowest energy production and consumption. Diesel fuel and nitrogen fertilizers consume a lot of energy. Electricity and water showed 13 % of energy consumption in PFS method. Depending on the type of cultivation in PDS method, human labor has a large share of energy. The results of benefit to cost ratio showed of PTS method (6.60) shows the high profit of rice production from the amount of cost. Categories of damage to human health, ecosystems and resources were reported according to ReCiPe2016 method for paddy production. The resource impact category for PDS (114.76), PFS (111) and PTS (102.60) USD2013 is the highest to the lowest, respectively. The categories of human health damage for PTS, PFS and PDS methods were 0.041, 0.04 and 0.05 DALY, respectively. The resource category accounts for a significant portion of environmental emissions. Results of CExD showed the non-renewable, fossil form has a significant value in PTS (12980.06), PFS (14215.41) and PDS (14544.40) MJ ton–1, also that nitrogen fertilizer and the use of machinery and diesel fuel have the greatest impact on energy forms.

Risk evaluation of energy investment projects along the Belt and Road based on cloud model and evidence theory

China's major energy projects along the Belt and Road are characterized by large-scale capital investment, long construction cycles, and complex investment environments, making it more difficult to assess project investment risks. Based on the PESTEL theory, a risk evaluation index system is constructed for energy enterprises' investment projects along the Belt and Road. In view of the uncertainty of energy investment projects, a risk evaluation method combining a cloud model and an evidence theory is proposed. To examine the developed index system and risk evaluation method, an overseas hydropower investment project is chosen and the risk factors are analyzed. The results suggest that the risk level of the enterprise's project is highest, the political and environmental risks are both high, the economic and project risks are both at average level, and the energy risk is relatively low, which verifies the effectiveness of this information fusion method. The method can be used to solve the problem of linguistic ambiguity and uncertainty in multi-attribute decision problems and is applicable to similar investment projects, thus providing a new technical path to assess the investment risks of energy enterprises along the Belt and Road.

Accounting and analytical support for monitoring the effectiveness of investment projects

As you know, the foundation of any investment project is formalized methods and criteria. To date, quite a lot of experience has been gained in evaluating investment projects at the preliminary stage, but problems arise in the organization of accounting and analytical support for monitoring their performance at the implementation and operation stages. This study proposes an author’s approach to accounting and analytical support for monitoring the effectiveness of investment projects, which involves the allocation of three areas of target indicators: economic, environmental, social, based on the calculation of financial and non-financial indicators.

Industrial policy in the Russian Federation: Analysis of tools

Subject. The study addresses prospects for the growth of industrial production in Russia in the face of sanctions. Objectives. The purpose is to search for the best way to increase the industrial and financial capacity of Russia’s regions. Methods. We employ general scientific research methods. Results. We considered State programs to support industry, defined the procedure for selecting and evaluating investment projects, proved the necessity of financing the most promising projects from Federal and regional funds. Conclusions. The government authorities may use the findings when developing and implementing measures aimed at support to industrial enterprises.

Анализ инвестиционной привлекательности «зеленых» акции ОАО «РЖД»

Purpose: To consider principles of green financing, their application practice in Russian Federation. To show up directions of the activity of those companies which development will raise attractiveness of socially and ecologically responsible investment of a bankroll. To pursue the analysis of the investment program of energetic enterprises, comprising transport holding. Methods: Research has been pursued for global approaches in investment project evaluation, in particular, there has been considered and assessed the investment program of the enterprise comprising JSC “RZHD”. The analysis of an explanatory note has been made on the realization of investment programs, aimed to the update of fixed assets, on the example of Oktyabr’skaya Administration of Energy-Supply of — Transenergo structural subdivision — an affiliate of JSC “RZHD”. Results: The indexes of “green finances” of various countries are considered, verification criteria have been researched of projects and programs which support society social welfare and natural environment care policies, Regulations are characterized which adjust ESG (Environmental Social Governance)-financing in Russian Federation. Issue dynamics of “green” obligations of a railway sector enterprise is analyzed. The trends, which development of will raise the attractiveness of a socially and ecologically responsible payroll investment, are indicated. The information on organizations, occupied with being embodied programs of energy effectiveness, is given. The drawbacks in information, being presented for verifying the issuance of stocks which provide for the implementation of ESG-programs, are shown up. Practical importance: The research obtained results of the article can be applied in the sphere of evaluation of investment programs for energetic and transport industries on the matter of ESG-principles compliance.

Current Challenges in Allocating Financial Resources for Public Investment

Abstract Public investment projects must be linked to the priorities of Cohesion Policy and the Sustainable Development Strategy, highlighting the importance of the investment process and the allocation of funding sources. Therefore, steps such as the evaluation, selection and prioritization of public investment projects are key elements in the public investment process, in order to create a stronger and more sustainable future in the face of crises. This paper aims to clarify some issues related to the current challenges of allocating financial resources for public investment in the context of global economic crises. Public investment management makes the difference in making quality public investment and progress in achieving sustainable development goals. However, the present reality shows that ensuring the efficient management of public investment projects will always encounter difficulties, of which the most threatening are considered to be represented by global economic crises and more recently by the COVID 19 pandemic crisis, through their widespread effects on economies. Therefore, strengthening public investment management must be a priority in public investment policies to maximize the impact of available public resources.

An intelligent multiple-criteria decision-making approach based on sv-neutrosophic hypersoft set with possibility degree setting for investment selection

PurposeThe main purpose of this article is to characterize a novel neutrosophic hypersoft set hybrid called possibility single-valued neutrosophic hypersoft set (psv-NHSS) for evaluation of investment projects by using its aggregation operations and decision-support system.Design/methodology/approachTwo approaches are employed in this article: set-theoretic approach and algorithmic approach. The former one is used to characterize the novel notion of psv-NHSS and its aggregations. The later one is used to construct a decision-support system by using the aggregations like core matrix, maximum-valued decision, minimum-valued decision and scoring-valued decision of psv-NHSS. The adopted algorithm is implemented in real-world scenario of hydroelectric power station project evaluation for investment purpose.FindingsThe proposed model is more flexible and reliable as it addresses the limitations of literature on neutrosophic set, neutrosophic soft set and other fuzzy set-like models by considering possibility degree, hypersoft setting and neutrosophic setting collectively.Research limitations/implicationsIt has limitations for decision-making situations where selection of parameters is of uncertain nature.Practical implicationsThe scope of this study may cover a wide range of applications in many fields of mathematical sciences like artificial intelligence, optimization, multiple-criteria decision-making (MCDM), theoretical computer science, soft computing, mathematical statistics, etc.Originality/valueThe proposed model bears the characteristics of most of the relevant existing models collectively and fulfills their insufficiencies by introducing a novel approximate mapping.

CONSIDERATION OF INFLATION FACTORS IN THE TACTICS OF FINANCIAL MANAGEMENT AND EVALUATION OF INVESTMENT PROJECTS TO RESTORE WAR-LOST UKRAINIAN CITIES AND THEIR INFRASTRUCTURE

CONSIDERATION OF INFLATION FACTORS IN THE TACTICS OF FINANCIAL MANAGEMENT AND EVALUATION OF INVESTMENT PROJECTS TO RESTORE WAR-LOST UKRAINIAN CITIES AND THEIR INFRASTRUCTURE

Risk Management of Investment Projects Based on Artificial Neural Network

The benefit evaluation of investment projects is the key to the whole investment activities. This paper mainly describes the risk management of investment projects using an artificial neural network. It generally adopts the index system of project risk through modern scientific measurement methods, to evaluate whether the investment project of artificial neural network is feasible or not. It establishes a benefit evaluation model based on an artificial neural network, from the analysis and consideration of 4 groups of experiments, comparing four sets of data: BP network convergence rate, artificial neural network identification efficiency, enterprise risk, artificial neural network output, and error; it is concluded that the relative risk is reduced by about 20% after using the artificial neural network. This also verifies the feasibility of artificial neural networks in the application of raw materials.

Proyecto de inversión industrial: Una alternativa para el desarrollo comunitario del ejido forestal Basihuare, Chihuahua, México

Introduction: To strengthen production chains in the state of Chihuahua, it is necessary to evaluate the feasibility of establishing sawmills in forest communities and ejidos. Objective: To formulate a sawmill investment project for the Basihuare ejido, Guachochi, Chihuahua, and to evaluate its viability by estimating financial and economic indicators. Materials and methods: Projections of supply from 2020 to 2024 were made based on the records of roundwood inputs of the Pinus genus from 2015 to 2019. Sawmilling coefficients, sawn timber grade distribution and market price were determined with historical information from a private industry located in Guachochi. Feasibility was evaluated by estimating the income tax established according to income. Results and discussion: A net present value of 16 194 605 MXN at a discount rate of 12 %, an internal rate of return of 78.69 % and a benefit/cost relationship of 1.25 were estimated. A break-even point of 1 520 255 bf produced, a payback period of 2.07 years and an economic profitability of 61.14 % were also determined. Conclusion: The indicators were positive in all cases, which shows that the project is financially viable. The methodology used for the formulation and evaluation of investment projects in the forestry sector can be replicated and adapted by different agrarian nuclei

METHODS AND APPROACHES TO ASSESSING INVESTMENT ATTRACTIVENESS

The most important aspect of making any investment decision is assessing the investment attractiveness of the investment object. Investment decisions are one of the most difficult tasks in terms of the selection procedure. They are based on a multivariate, multicriteria assessment of a number of factors and trends that often operate in different directions. The investment attractiveness of the enterprise is used as an integral characteristic of investment opportunities, which is formed by the assessment of the expediency of investing in a particular business entity for a certain period of time. Knowledge of the market value allows the owner of the object to improve the production process, to develop a set of measures aimed at increasing the market value of the enterprise. Periodic valuation improves management efficiency and thus prevents bankruptcy and destruction. Practical methods of assessing the investment attractiveness used by leading Western consulting firms and investment companies are considered a trade secret, inaccessible to the general public and not adapted to Ukrainian economic conditions, which indicates the relevance of the study of this problem.The essence of investment attractiveness of the enterprise is determined, the critical analysis of methods for its estimation is carried out. In the current economic conditions, there are several approaches to assessing the investment attractiveness of enterprises. The first is based on indicators of financial and economic activity and competitiveness of the enterprise. The second uses the concepts of investment potential, investment risk and methods of investment projects evaluation. The third is based on the assessment of enterprise value. Each approach and each method has its advantages, disadvantages and limits of application. The more approaches and methods will be used in the evaluation, the higher is the probability that the final value will objectively reflect the investment attractiveness of the enterprise. The advantages and disadvantages of each method are identified, practical recommendations for choosing a particular method in investment decision-making process are given.

Efficiency of Investment Project Evaluation in the Development of Innovative Industrial Activities

The article discusses the issues of the effectiveness of investment projects, and their assessment when introducing innovations into the process. As you know, innovations, both domestic and foreign, allow you to first create the prerequisites for stabilizing the situation in the country's economy, and then for a radical increase in its efficiency. That is why the theoretical substantiation of the conceptual approach, the development of practical recommendations for solving problems, and strategies for the innovative development of industries are becoming an important factor in progress and, therefore, very relevant and significant research for practice. The efficiency of investment projects is analyzed based on the goals of the industry, methods are used and a calculation is given to increase the efficiency of implemented projects in the industry. In this regard, it is necessary to note the particular importance of timely identification and systematic use of reserves for the implementation of innovative activities, as well as for increasing innovative activity to achieve more efficient further activities of industries.

Traffic rate forecasting inaccuracy influence on road construction and reconstruction projects' economic efficiency

Timeliness. Today financing road development and maintenance is one of the defining issues in ensuring the economic growth of any country since investments in road infrastructure are strategic. There is no doubt that only with the adequate quality road infrastructure, the state can fully use its export and logistics potential. Special significance in the light of the indicated factors gets an effective toolkit for evaluating investment projects for the construction of new and reconstruction of existing roads. This issue acquires critical importance when it comes to the use of budgetary subsidies. The subsidies' cost-effectiveness is known to be influenced by a wide range of factors and various determinants. In this regard, the study's purpose is to consider methods to assess the impact of inaccurate traffic forecasting on the economic efficiency of subsidies. Study's methodological framework. To achieve this goal, a wide range of scientific knowledge tools was used, namely: comparative analysis, deduction, and induction, modeling, forecasting, generalization, systematization. Results. The article describes in detail and highlights the factors influencing the subsidies economic efficiency allocated for road construction. Using the Logical Framework Approach, the risk impact and consequences of inaccurate traffic forecasting on the overall project efficiency and the economic return on allocated subsidies are demonstrated. To carry out specific calculations and implement analytical procedures, the methodology used in the countries of the European Union (EU) is considered, which allows for assessing the impact of the subsidies effectiveness through the payment for the use of the road by various vehicles, the potential savings in transportation time and reduction in the distance of transportation. In addition, an approach is described that takes into account the distribution of project financing between the state and a private investor, as well as the predicted traffic intensity, which together determine the economic effect magnitude received by each of the partners. The particular emphasis within this approach is placed on the need for a clear formalization, categorization, and calculation of all costs associated with the preparation and implementation of the project.

The social discount rate in the evaluation of investment projects: an application for Ecuador

The standard social discount rate of 12% applied by planning institutions and multilateral agencies when evaluating public projects is a constant administrative parameter that is unsupported and unresponsive to changes in social preferences over time. This paper presents an alternative way of determining the social discount rate based on the gamma estimation model (Weitzman, 2001) in a developing-country context, which has three advantages: (i) it incorporates decreasing discounting, (ii) it is cost-efficient in that it sums up the various expert opinions and (iii) it adjusts for changes in short- and long-term preferences. Our estimates are lower than the standard nominal rate for different time periods, ranging from 2% for evaluation horizons longer than 51 years to 11% for the short term (0–5 years).

Improving Reliability for Linguistic Preference Relations Considering New Ordinal and Cardinal Consistency Measures

Linguistic preference relations (LPRs) and its variations served for different decision-making situations are significantly important instruments of qualitative decision-making. The consistency analysis of LPRs is a necessary prerequisite for further operations of these original preference relations so as to ensure that the final decision results are convincing. However, the existing consistency improvement methods for LPRs are difficult to guarantee the reliability of the revised LPRs. Because the suggested LPRs from these methods either not eliminate the ordinal inconsistency or not satisfy the expectation of minimum modification. In this paper, a new definition of ordinal consistency of LPRs is first proposed and then an optimization approach is constructed to eliminate ordinal inconsistency for LPRs. Secondly, a new cardinal consistency index for LPRs is proposed and a corresponding optimization model to increase the cardinal consistency level is presented. After that, an optimization model is proposed to simultaneously manage ordinal and cardinal inconsistency for LPRs. Last, the proposed models are applied to a real linguistic decision-making problem involving evaluation and selection of investment projects. The comparative analysis and discussion illustrate the applicability and effectiveness of the proposed models.

Investments in Pinus elliottii Engelm. Plantations: Real Options Analysis in Discrete Time

Background: The commonly used methods for the financial evaluation of plantation forest investment projects do not incorporate uncertainties and ignore the value related to flexibility. The real options analysis makes it possible to capture these values in investment projects, increasing their value and return. Despite this, studies involving real options in forest investment projects are scarce, specifically those related to Pinus spp. Therefore, this study aimed to: (a) analyze whether the real options analysis adds value to investment projects of Pinus elliottii Engelm. plantations; and (b) make the real options analysis more accessible to forest managers and potentially increase its use in the investment projects of Pinus spp. plantations. Methods: We evaluated two investment projects in P. elliottii plantations in southern Brazil, which differed in the way of obtaining the land for planting: with lease or purchase of land on a planning horizon of 21 years. In the real options analysis, we used deferral, expansion, and abandonment. Results: Individually, the deferral, expansion, and abandonment options add value to investment projects in Pinus elliottii plantations. The option to expand the forested area is one that adds the most value to the investment project with land lease. In the investment project with land purchase, it is abandonment. Conclusions: Investment projects in Pinus elliotti plantations that contemplate the land purchase analyzed through the real options analysis present higher financial returns than those that consider land lease, inverting the result provided by the traditional analysis.

The cost-benefit concept in the economic assessment of the effectiveness of investments in public projects

The concept of costs and benefits is a concept that analyzes public (social) benefits and public (social) costs in the implementation of public or commercial investments. In general, the concept is aimed at assessing the social (public) consequences of the implementation of a specific investment project, which actualizes the content of this study, since commercial evaluation of investment projects is a "traditional" and understandable mechanism, unlike public or social evaluation. The object of the study is investments that have public (social) significance at different levels of participation of all stakeholders. The subject of the study is the mechanism for implementing the concept of costs and benefits in the implementation of a specific investment project. The purpose of the study is to reveal the content of cost–benefit analysis in foreign and domestic practice. Research methodology – theoretical methods of analyzing economic knowledge on a heuristic basis according to generally accepted methods of scientific cognition. The results of the study: 1. The section Materials and methods includes the content of cost-benefit analysis in the following areas: commercial, budgetary, public projects; 2. It is explained that the concept of budget effect from the implementation and development of investments is mainly a characteristic of domestic practice of economic evaluation of investment projects; 3. In the section Research results based on the theoretical analysis, the authors highlight the entire process calculation of public (social) utility (profitability) or social costs and benefits in the form of five stages; 4. In the Discussion section, the existing specific disadvantages of cost-benefit analysis are highlighted, which should be offset by the scaling of scientific research in the subject area.

INTERNAL RATE OF RETURN AS AN ENHANCEMENT OF THE DECISION-MAKING PROCESS IN THE ASPECT OF CHOOSING THE INVESTMENT PROCESS

The functioning of the enterprise in a dynamically changing environment requires constant shaping of its effectiveness, development, investment activity. Investment activity is inscribed in every type of business. Evaluation of investment projects has to indicate the best solution from among the proposed ones. The result of investment project efficiency evaluation depends directly on the stream of net cash flows and the level of discount rate applied to its updating. The relevance and quality of investment decisions affects, among other things, the competitiveness of the entity, its market share, prospects for revenue generation. Internal Rate of Return (IRR) is the discount rate at which the net present value of an evaluated project is equal to zero. IRR shows the rate of profitability of a project, which is paid when its internal rate of return is higher than the cut-off rate, which is the lowest rate of profitability acceptable to the investor. This indicator is focused on a single project with regular capital flows, which can also be a disadvantage for some investments. With IRR it is possible to evaluate the cash flows associated with a project. IRR helps in making the right decision from the perspective of shareholders and other decision makers.

Post Evaluation of Power Grid Project Based on Rough Set and Improved Multi-Level Extension Assessment

Post evaluation of power grid investment and construction project is an important part of power grid construction project. The effect of post evaluation will directly affect the quality level of project construction. Therefore, this paper proposes an improved post evaluation system based on rough set and fuzzy multi-level extension. Firstly, the main factors affecting the function effect of power grid construction project are analyzed. Then, the improved fuzzy multi-level extension evaluation model is constructed by combining fuzzy comprehensive evaluation theory with multi-level extension evaluation method. Finally, a 220 kV substation construction project is taken as an example to verify the validity and rationality of the model.