Effectiveness Of Investment Projects Research Articles

Development of a methodology for assessing the integral effectiveness of an investment project for the camping site construction in the coastal zone

The article analyzes the main factors for the campsites placement, as well as the classification of campsites by type. The analysis of the regulatory framework for the camping operation in the coastal zone on the territory of the Russian Federation. The assessment of the main factors for the auto camping location, as well as the advantages of auto tourism in comparison with the other types of tourism. An economic examination of the investment project effectiveness for the construction of a camping site was conducted on the basis of such indicators as: net present value, profitability index, internal rate of return and payback period. In the process of managerial examination of the investment project for the construction of a camping site with a hotel and entertainment complex, an assessment of the project management effectiveness was carried out. A methodology for assessing the integral effectiveness of an investment project according to the following criteria of functional efficiency is proposed: economic, organizational, social, environmental, legal, energy, technological, psychological, political and ethical.

The transport construction investment project effectiveness assessment by Monte Carlo Method

The study focuses on the effectiveness basis of the transport construction investment projects operating at three investment levels, taking into account risks using the Monte Carlo simulation method. The model on the example of a railway line has been developed. An assessment of the investments’ budgetary, social and commercial effectiveness based on the investment sources has been provided. A comprehensive criterion for substantiating the effectiveness of a project operating at three investment levels, taking risk into account, has been proposed. A risk profile has been built. The average value of the risk level using the Monte Carlo method has been estimated. An example of substantiating the effectiveness of an investment project taking into account the risk of building a railway line has been given.

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.

B2B and B2C marketing of energy-saving products, technologies and programs

The article deals with the problem of increasing the effectiveness of the introduction of energy-saving technologies and energy-efficient development of the Russian economy. The analysis of failures introduction to the B2B and B2C markets energy-saving technologies, products, programs and low interest of participants testifies to underestimation of marketing tools. The purpose of the study is to substantiate the need to use a marketing approach to the development and implementation of energy-saving programs, products and technologies in the B2B and B2C markets. The methodological basis of the research is the methods of logical, statistical, comparative, expert analysis, marketing research. The information base was made by normative legal acts, state programs in the field of energy efficiency, analytical materials, expert assessments. Research results: the necessity of marketing support of energy efficiency projects in the four-level system “state-region-companies-population” is substantiated; the features and key elements of the marketing model of energy-saving technologies, products, programs are highlighted; formulas for assessing the attractiveness and identifying stimulating factors at four levels are proposed, taking into account the classical approaches to assessing the effectiveness of investment projects. Practical value lies in the possibility of using recommendations in promoting and evaluating the attractiveness of energy-saving products, technologies and programs.

Efficiency management of technological renewal of production enterprises in the Arctic under conditions of economy digitalization

Three main problems have been formulated and their solution will make it possible to ensure the maximum efficiency in the use of production resources - material, labor and fixed capital due to the digitalization of managing technological renewal of production enterprises in the Arctic. It is shown that these problems can be solved by using a new direction of economic analysis of production systems—the investment- and- innovation analysis. It is proposed to use the coefficient of technological effectiveness level, defined by the ratio of capital intensity of production to its material intensity of product or by the ratio of material productivity to capital productivity, as well as the level of material productivity as targets of technological renewal. It is established that the simultaneous increase in the values of the coefficient of technological effectiveness level, material and capital productivity is possible only at one of six possible stages of the life cycle of technological development of enterprises. An algorithm of enterprises’ actions in making management decisions on technological renewal of production has been developed. It is proposed to supplement the methodology for assessing the effectiveness of investment projects in their implementation at existing enterprises by calculating the damage from the reduction of material productivity, capital productivity and labor productivity in case of delay in the technological renewal of production.

EVALUATIONOFTHEEFFICIENCYOFINVESTMENTPROJECTSBYTHEMETHODOFTHECOBBDOUGLASDERIVATIVEFUNCTION

The article substantiates the use of the method of analysis of the Cobb-Douglas derivative function, which contributes to an additional evaluate of the effectiveness of investment projects, giving investors and managers confidence in the implementation of investment projects in the production process.

НОВЫЙ ПОДХОД К ОПРЕДЕЛЕНИЮ СТОИМОСТИ КАПИТАЛА И СТАВКИ ДИСКОНТИРОВАНИЯ ПРИ ОЦЕНКЕ ЭФФЕКТИВНОСТИ ИНВЕСТИЦИОННЫХ ПРОЕКТОВ

Based on the study of scientific literature, the article reveals the ambiguity of the interpretation of the concept “cost of capital” and shows the shortcomings of existing methods for determining the amount of cost of capital and discounting cash flows. An approach, developed by the authors to determine the value of the cost of capital and discounted cash flows in assessing the effectiveness of investment projects, is proposed for use in Uzbekistan and other countries with an insufficient level of stock market development.

Minimizing the Environmental Impact of Industrial Production: Evidence from South Korean Waste Treatment Investment Projects

This research deals with the theoretical and practical issues of investment support activities for industrial waste management in developed countries, based on the example of South Korea. The main goal of this research is the evaluation of waste treatment investment projects and understanding their impact on the development of environmental policies. The problems of forming the sustainable systems for controlling the disposal of industrial wastes are being studied. The authors discuss the practical application of environmental policies and modern technologies of South Korean companies in the field of industrial waste processing. The approaches of waste investment project’s evaluation are applied and multi-criteria decision making (MCDM) methods were discussed for various cases and applications. Using MCDM methods, the authors study the effectiveness of investment projects in waste treatment activities in Korea. The analyses of MCDM methods are implemented in this research to provide some instructions on how to effectively apply these methods in waste treatment investment project analyses. Furthermore, the authors propose a combination of multi-criterial selection and interval preferences to evaluate waste treatment projects. The proposed approach improves the method of calculating economic efficiency based on a one-dimensional criterion and sensitivity analysis. The main results of this research perform the investment impact and risk-analysis on the environmental policies development.

Correct accounting of risks in assessing the effectiveness of investment projects of metallurgical companies

This article proposes the methodology that modifies the capital asset pricing model (CAPM). The proposed methodology allows for separate accounting of risks of the first and second kind and, accordingly, to correctly reflect them in the calculations using the discounted cash flow method. This makes it possible to adequately assess the effectiveness of investment projects and make informed management decisions.

Методические подходы к управлению проектами развития территории на основе комплексной жилой застройки

The article focuses on the problem of creating the comfortable urbanized environment by means of complex housing development of districts acting as an effective management tool that ensures a balanced spatial development of the economy of municipalities. The conditions of investment attractiveness of the projects of territorial integrated development are defined on the basis of their modeling. A brief description is given and the results of modeling (morphological, economic) are presented. Measures for investment management in the complex residential development and logical sequence of their implementation are established. The content is disclosed and the algorithm of choosing the optimal variant of complex residential development is proposed. The selection scheme of the housing development project includes summarizing information about the construction site, morphological modeling of design decisions for integrated housing development, determining the correspondence of design decisions to urban planning regulations, building codes and rules, economic modeling of design decisions, determining the compliance of commercial performance indicators with the owner’s expectations, providing design solutions to municipal authorities for approval, determining the compliance of the project results with the municipality expectations, approval of the project development and involving the project into the municipal investment program. It has been stated that assessment of the effectiveness of investment projects financed with budgetary resources does not take into account the environmental and social efficiency of investments in the non-productive sphere, the Rules of Land Use and Development for the territories of municipal entities do not establish full, comprehensive requirements for evaluating the effectiveness of decisions on the development of municipal territories in the long-term run. There has been substantiated the necessity to differentiate the residential real estate objects according to the degree of comfort, which is an effective indicator of the assessment of the quality of housing construction and the need for municipal authorities to take into account additional indicators when choosing a project of complex residential development in order to meet the expectations of all parties involved.

Improving the financial investment system as an object of business economics

Subject. This article explores the economic relations of economic entities concerning effective investment activities, combining elements of investment control and assessment of related risk. Objectives. The article aims to analyze and logically substantiate the stages and types of investment activities of enterprises and investment projects in-progress, as well as define a methodological approach to assessing project risks. Methods. For the study, we used a structural and logical analysis, and deductive reasoning. The methodological base of the study is based on the principles of the theory of finance, investment and risk management. Results. The article defines stages of assessing the financial condition of enterprises and proposes a methodological approach to assessing certain risks of an investment project based on the risk ranking by degree of probability and significance of an event through applying the expert assessment method. The article also presents a practice-oriented risk map for investment projects and clarifies the concept of Investment Control. Conclusions. The results of the study can help address the significant for the Russian economy issue of stimulating and developing investment activities at enterprises, as well as implementing and evaluating the effectiveness of investment projects at the micro-and macro-levels of the country's economy.

Methodological Approaches to Assessing the Economic Efficiency of Investment in Residential Real Estate

The article discusses the conditions and opportunities for the implementation of various strategies for the acquisition of residential real estate. The choice of indicators used to assess the economic efficiency of investment depending on the investment or consumer interests of the subjects of the residential real estate market is analyzed. The possibility of using the term «private investor» in relation to the residential real estate market in the most common transactions is determined. The issue of applicability of the economic effectiveness indicators for assessment of efficiency of private investment in residential real estate is studied. The article analyzes various options for solving the housing problem from the perspective of a private investor using indicators of the economic effectiveness of investment projects. The conditions and limits of applicability of this approach for the evaluation of the effectiveness of the acquisition of residential real estate are determined.

Ecological and economic efficiency of the life cycle of railway territorial-industrial complexes

The paper focuses on the development of the life cycle and its corresponding stages for the new concept of railway territorial-industrial complexes (RTIC). The life cycle calculation methodology (LCC) together with traditional methods of evaluating investment projects makes it possible to carry out an in-depth analysis of the effectiveness of investment projects in accordance with the recommendations of international standards. Here we mean such investment projects as RTIC of surface wastewater coming from railway stations purification. The life cycle of RTIC of surface wastewater treatment facilities can be divided into temporary stages with their technical and technogenic parts. The research also provides mathematical calculations done with account of railway territorial-industrial complexes specific character.

К вопросу оценки эффективности инвестиционных проектов в условиях риска и финансовой нестабильности

К вопросу оценки эффективности инвестиционных проектов в условиях риска и финансовой нестабильности

МОДЕЛИ ФОРМИРОВАНИЯ ПОКАЗАТЕЛЕЙ БИЗНЕС-ПРОЕКТА НА ПРЕДПРОЕКТНОЙ СТАДИИ ОЦЕНКИ ЭФФЕКТИВНОСТИ ИНВЕСТИЦИЙ В ФОРМЕ КАПИТАЛЬНЫХ ВЛОЖЕНИЙ

When assessing the value of capital investments, they often do not pay due attention to those capital investments that are associated with the formation of a sufficient amount of working capital, focusing on fixed assets. Meanwhile, capital investments in the project working capital formation are necessary to cover the costs of the preparatory process, inventory formation, and the creation of a reserve for the period until payments are received for receivables on products sold. During the period of acquisition of assets, one of the important components of investment costs, along with capital expenditures in fixed assets and intangible assets, is net working capital, which is the cost of increasing working capital (current assets). It should also be noted that when evaluating the effectiveness of real investment projects at the stage of feasibility study, it is neither possible nor necessary to calculate net discounted income for individual periods, since at this stage of analysis, it is unlikely that annual differentiation of costs and results will be provided. Thus, when determining the effectiveness of an investment project at the stage of pre-feasibility study of the main decisions, it is justified to use simplified calculations of operating results based on annuity models. An important problem should be recognized as modeling the mechanism for returning invested amounts. To ensure the adequacy of the algorithm taking into account the reimbursement of non-recurring costs in the calculation of investment performance should take into account the flow of funds sinking Fund (in the form of means for reproduction of fixed assets and the depreciation; or funds that ensures return on investment). In the same section, the organization's assets that remain after the end of the business project should be taken into account. In the article, the authors present the improvement of the model for forming business project indicators at the pre-project stage of evaluating the effectiveness of investments, taking into account all these aspects.

ФОРМИРОВАНИЕ ВЕРОЯТНОСТНОГО КАЛЕНДАРНОГО ПЛАНА СТРОИТЕЛЬСТВА

Introduction: The design stage and preparations for construction include the development of construction schedules needed to justify the duration of construction works. Methods: Based on probabilistic scheduling, a multitude of solutions can be generated for each implementation roadmap (progress chart). These decisions can be defined as optimistic, most probable or likely, and pessimistic. Rational roadmaps are selected in accordance with benchmarking. Simple and discounted payback periods are used as frequently applied criteria included in the system of evaluating the economic effectiveness of investment projects. Based on identifying the given indicators of project evaluation, a method of designing probabilistic construction progress charts has been developed; the latter serve as the basis for devising respective organizational-technological solutions. Results: The design of optimistic, pessimistic, and most probable construction roadmaps (schedules or progress charts) enables the use of a developed model for probabilistic prognostication of future production risks affecting the delay of construction completion.

Methods for assessing the effectiveness of energy-saving projects in construction and public utilities sector

The purpose of this paper is to assess the effectiveness of investment projects in terms of ensuring energy security and sustainable economic development of construction enterprises and public utilities sector. The study revealed that existing methods for assessing the efficiency of energy-saving projects in public utilities sector are often local in nature and do not contribute to energy security. A methodology is needed for the economic feasibility of energy demand at affordable prices in the domestic and foreign markets. As a result, the authors proposed a method for solving the problem of rational use of fuel and energy resources in a system of three sectors: capital construction, public utilities sector, and the fuel and energy industry as interrelated sectors of the economy and the economic turnover of fuel and energy resources.

КРИТЕРИИ ЭФФЕКТИВНОСТИ ОБЩЕСТВЕННО ЗНАЧИМЫХ ИНВЕСТИЦИОННЫХ ПРОЕКТОВ И ИХ РАСЧЕТНЫЕ ФОРМУЛЫ, ПРИНЯТЫЕ В РОССИЙСКОЙ ПРАКТИКЕ

The article analyzes domestic guidelines for assessing the effectiveness of investment projects reflected in the regulatory documentation, both current and invalid. Considered are methodological approaches to calculating key performance indicators of investment projects - net discounted income, internal rate of return, discounted payback period and profitability index. The results of the analysis and recommendations for the further development of national regulatory documents for project analysis and methodological approaches to assessing the effectiveness of socially significant investment projects are presented. The results of the analytical work presented in the article are planned to be used to create a methodology for the selection of socially significant projects for the provision of state support.

EVALUATION AND PROFITABILITY MANAGEMENT OF INVESTMENT PROGRAMS OF SMALL AND MEDIUM-SIZED BUSINESS ENTERPRISES BY THE BREATHLESS CRITERION

The article is based on the idea of forming a conceptual framework for managing the profitability of investment projects, which is mainly based on the comparability of fixed and variable costs, both as a whole on production and per unit of output. Applying the criterion of break-even point of enterprises, a conceptual vision of determining the optimal volume of production is given. The article focuses on a careful analysis of investment projects for small and medium enterprises, due to their natural inability to incur losses over a long period of time in contrast to large business entities. The article provides mathematical tools for determining the total cost of production and a parametric equation of conditions for the impact of output (work or services) on the company's profits. Based on this, it is proved that the break-even analysis of projects using absolute values and its graphical interpretation complicate the practical implementation of the search for rational values of project implementation parameters in repeated studies of alternatives. Therefore, it is noted that the critical volume of production in this case is a function of two variables, which makes it possible to obtain a graphical solution to determine the optimal volume of production, which corresponds to the break-even point in the form of appropriate fixed parameters. Based on the research, it is concluded that the considered schedules can be used to make management decisions to ensure break-even output under the conditions of various project options, in determining the allowable values of fixed costs and variable costs per unit of output. The proposed graphical model is simple and clear, it can be used to determine a rational decision without costly calculations, which increases the efficiency of management decisions. In addition, the developed model can be used to compare the effectiveness of investment projects. On the basis of the developed model the graphic interpretation of estimation in relative units of levels of break-even production and profit and a stock of financial durability of JSC Udarnik depending on volumes of production of the pneumatic tool, the price of its realization, constant and variable expenses is carried out.

Выявление тенденций при строительстве энергосберегающих зданий

The article presents the analysis results of formation and development of the construction of energy-saving buildings in the world and domestic practice and determines the work stages. The trends in the construction of energy-saving buildings in Russia are identified. The necessary conditions for the development of efficient construction of energy-saving buildings are specified. The direction of improving the methodology for assessing the effectiveness of investment projects of energy-saving buildings is determined.