Evaluation Of Investment Projects Research Articles

Sustainable Entrepreneurship: Interval Analysis in Risk Management and Uncertain Economies

Sustainable management in high-tech enterprises is a key aspect of successfully operating modern companies, especially under conditions of risk and uncertainty. This study reviews the field of sustainable management and interval analysis and identifies the main trends and challenges facing high-tech enterprises in the modern world. This study emphasizes the importance of applying interval analysis in making strategic decisions and developing sustainable business models that can adapt to variable environments. This paper presents empirical data, illustrating the practical application of interval analysis tools in the management in high-tech enterprises. It analyzes the effectiveness and potential of this approach to increase the levels of sustainability and competitiveness of organizations in constantly changing business environments. In general, this article is a valuable contribution to the development of sustainable management theory and practice for high-tech enterprises, enriching the existing knowledge in this area and offering new perspectives for research and practical application. Our research has been validated and is presented in the results section. The purpose of this study is to present current developments in methodologies and tools for risk measurement within the probabilistic paradigm of uncertainty, which are supposed to be used in relation to the economic evaluation of real investment projects. The methodological directions or approaches to risk measurement formed in this context are (1) based on quantile measures, within which the quantitative aspect of risk is modeled using quantile quantiles of the distribution of a random variable describing the possible (predicted) results of economic activity; (2) the Monte Carlo method, which is a tool for evaluating the indicators of economic efficiency and risk in justifying real investments, taking into account different distribution laws and mutual relations for the financial and economic parameters of the investment project, as well as its computational and instrumental elaboration.

Peculiar features of economic evaluation of investment projects on industrial processing of animal by-products

During the implementation of the projects on industrial processing of animal byproducts it extremely important to take into account the peculiar features of the technological process of processing animal by-products to ensure the safety of manufactured products and all stages of the production process. In order to do this it is necessary to identify the potential risks which will influence the projects on utilization of animal by-products and to strictly follow the legal requirements in this field. While implementing the projects in processing animal by-products special attention should be paid to adaptation of technological process to the current world trends and requirements of the industries of the agricultural complex. The main task in the implementation of the projects on industrial processing of animal byproducts is to encourage investors while implementing the projects, the opportunities to decrease the risks, and to receive a full economic justification for making capital investments in projects of this type. The authors suggest a method of calculation of economic effectiveness of investment projects on industrial processing of animal by-products which includes taking into account the risks on the basis of cumulative calculation of the discount rate. In particular, it is proposed to consider environmental, scientific research, regulatory and economic risks. Application of this method in the implementation of the projects on industrial processing of animal by-products will allow both providing objective evaluation of economic and environmental effectiveness of the projects and encouraging investors to participate in the projects of this type.

Retraction: Effects of cost-benefit analysis under back propagation neural network on financial benefit evaluation of investment projects.

Retraction: Effects of cost-benefit analysis under back propagation neural network on financial benefit evaluation of investment projects.

Cost-Benefit Methodology in Public Investment in the Peruvian Educational Sector of Invierte.Pe. a Practical Case

Objective: The purpose of the research is to show a specific process to perform the cost/benefit analysis in the social evaluation of public investment projects in the education sector, applying the net present value (NPV) and internal rate of return (IRR) profitability indicators, taking into account that the approach of the National System of Multiannual Programming and Investment Management (Invierte.pe) applies a different methodology as the cost/efficiency analysis, where it uses criteria such as the Present Value of Costs (PVC) and the Cost Efficiency Indicator (CEI). Theoretical framework: In order to present our proposal, we used as a theoretical framework, mainly the directives, instructions, procedures, and methodological guides proposed by the Ministry of Economy and Finance of Peru, which can be improved by considering the results of investment in education. Method: The research proposes a technique to evaluate investment projects in the education sector through the cost/benefit methodology instead of the cost/effectiveness methodology. Within the materials and methods, an education sector investment project approved by Invierte.pe was used, and we added cost/benefit analysis to estimate the profitability indicators NPV and IRR to carry out the social evaluation of the project. Results: The results show that the education project has a net present value of S/. 794,874.30 at social prices, and an internal rate of social return of 9.56%. Finishing the research, it can be concluded based on the results obtained that it is possible to incorporate the cost/benefit methodology in the formulation and evaluation of standard, simplified technical sheets and studies at the profile level of public investment projects in the education sector. Conclusions: It can be concluded that it is feasible the social evaluation of investment projects in the educational sector of the Peruvian state, through the cost/benefit methodology in the region and the country, by means of the profitability indicators NPV and IRR, obtaining a higher internal rate of return.

Mechanisms for managing investment activities in the agro-industrial complex

The relevance of the study of investment management mechanisms in the agro-industrial complex is explained by the fact that only those subjects of the agro-industrial complex that carry out active investment activities have prospects for successful functioning. However, the pace of their development is largely determined not only by the volume of investments, but also by the efficiency of their use. At the same time, the concept of «investment» reflects a complex and significant economic category. On the one hand, investments make it possible to carry out the process of agricultural production itself, and on the other, the results of the production process affect savings, that is, the possibilities of further investment. At the same time, the conducted study of the indicators of measurement and evaluation of investment projects allowed us to more fully reveal their content, objective relationships between them. At the same time, the prerequisite for calculating performance indicators was the justification of approaches that take into account objective economic laws

СТРАТЕГІЧНЕ УПРАВЛІННЯ ІНВЕСТИЦІЙНОЮ ДІЯЛЬНІСТЮ НА ПІДПРИЄМСТВАХ З ПЕРЕРОБКИ ТВЕРДИХ ПОБУТОВИХ ВІДХОДІВ

The article demonstrates that Ukraine faces significant challenges in the management of solid household waste. These issues include the absence of a clear waste disposal strategy and insufficient attention to environmental safety. Most landfills in Ukraine fail to meet safety standards and environmental norms, posing a threat to the surrounding environment. Effective resolution of these problems involves the implementation of advanced solid household waste processing technologies and the improvement of waste management systems to ensure sustainable resource utilization and reduce negative environmental impact. The prospects for the development of enterprises involved in solid household waste processing are discussed, including societal awareness of environmental pollution issues and the need for protection, legislative initiatives aimed at reducing waste volumes, and technological progress enabling the creation of new products from recycled waste while minimizing environmental impact. It is argued that the development of this sector can stimulate investments and contribute to the creation of new jobs in the environmental economy. It is argued that effective strategic management of investment activities in enterprises dealing with solid household waste processing is a crucial factor in their successful development and achieving competitive advantage in the market. It is demonstrated that based on the analysis of the enterprise’s needs and opportunities, an investment strategy should be developed to align with strategic goals and enhance its competitiveness. This strategy involves optimal resource utilization to ensure sustainable development and maximize financial results. The main stages of developing and implementing the investment management strategy in enterprises dealing with solid household waste processing include market and needs analysis, selection of investment directions, evaluation of investment projects, development of an investment plan, implementation of investment projects, monitoring and control, evaluation of results, and strategy adjustment. It is proposed that for maximum effectiveness, these stages of the strategy should be implemented comprehensively.

The Feasibility Study Report as an Effective Tool to Evaluate Investment Projects: A Solid Waste Treatment Project as a Case Study

Hundreds of infrastructure investment projects are inserted into the Iraqi government budget annually. Many of these projects suffer from suspension, delay in completion, corruption, or other negative issues known in Iraqi construction projects. This may harm the country's economic recovery due to allocating funds to useless projects from one or more feasibility studies' components. Therefore, the best solution is to pay attention to the feasibility study reports. This study highlights the importance of feasibility studies reports for investment projects and their effective role in evaluating project ideas to ensure an equitable distribution of a country's financial resources to the most feasible investment projects. This importance was highlighted through a practical case study for a solid waste treatment project. The results of the case study showed that feasibility studies provide very important information on which investors and governments can rely to make the appropriate decisions for investment projects. The study also addressed the risks that investors can be exposed to in Iraq and how to include them in the economic analysis of feasibility studies.

Research on investment project evaluation: Comparative analysis based on NPV and IRR

Whether a project is viable, determining whether a project is viable requires some metrics. The indicators that are most frequently utilized are the Net Present Value (NPV) and the internal rate of return (IRR). They are very representative and scientific. The same decision can be made by applying both in independent and non-independent projects When there are many contradictions between NPV and IRR, it is necessary to introduce new indicators to continue to judge the project, such as △IRR, incremental IRR method, modified IRR (MIRR) method, selective IRR method, payback period method, Equivalent Annual Annuity (EAA) method and static analysis method. The investment is selected by comparing the internal rate of return △IRR with the benchmark rate of return (ic) or the social discount rate. The MIRR approach determines the IRR of each scheme, compares it to ic, chooses the scheme that have IRR is larger than or the same as ic, and then determines the incremental IRR of the two neighboring schemes to make the choice. In addition to the investment payback period approach and the selective internal rate of return method. EAA method is in the comparison of investment projects, investors should choose the project with higher EAA when comparing. In the process of investment projects, different enterprises can adopt static analysis method to carry out project investment, but there are two forms of static analysis method, such as payback period method and basic income method. Using reasonable indicators and methods to evaluate the investment project, so as to select the best project.

The Marketing Evaluation of Capital Investment Projects

The Marketing Evaluation of Capital Investment Projects

ТЕОРЕТИЧНІ АСПЕКТИ ВИКОРИСТАННЯ МЕТОДУ МОНТЕ-КАРЛО ДЛЯ МОДЕЛЮВАННЯ ОЦІНКИ ЕФЕКТИВНОСТІ ІНВЕСТИЦІЙНИХ ПРОЕКТІВ

This article is dedicated to the theoretical study of applying the Monte Carlo method for evaluating the efficiency of investment projects within enterprises. The author examines the principles and advantages of using this stochastic method in modeling economic parameters and project risks, as well as analyzing the method's capabilities in generating various scenarios for justifying investment decisions based on probabilistic calculations. The article explores methodological aspects of simulation modeling of investments, including the creation of applied mathematical models that simulation real economic processes and situations using pseudorandom numbers to generate random variables. This allows for the determination of potential financial outcomes of investment projects with varying degrees of risk and uncertainty. The historical development of the Monte Carlo method and its contemporary use in investment analysis are highlighted, emphasizing its significance in providing a deep understanding of variations in the initial data of investment projects. Particular attention is paid to the method's ability to adapt and account for uncertainty in complex investment scenarios, making it an indispensable tool for investment analysis. Efficiency indicators of investment projects, which are used to assess the economic benefits of investments, are analyzed. Key indicators include Net Present Value (NPV), Internal Rate of Return (IRR), and Profitability Index (PI). The Monte Carlo method is used to model the probabilities of various financial scenarios and influences the assessment of these indicators, providing a more detailed analysis of potential risks and returns from projects. The article emphasizes the importance of the Monte Carlo method as a foundation for developing new approaches to evaluating investment projects and managing risks. This contributes to a better understanding of how modern approaches to simulation modeling can affect the decisions of investors and managers, especially in situations where classical evaluation methods may be ineffective. Therefore, the application of the Monte Carlo method in modeling investment projects not only helps assess overall efficiency indicators but also allows for a detailed analysis of potential investment project risks, making it an indispensable tool in contemporary investment analysis.

ALGORITHM OF FUZZY PRIORITIES FOR ALTERNATIVE SOLUTIONS

It is rather problematic to approximate the real decision management process with a mathematical model. Most decisions in the economy are complex in structure, multi-criteria tasks containing a set of descriptive, probabilistic, undefined characteristics. Such problems are solved by methods of system analysis. One of these methods is the method of analyzing hierarchies, which is used for models of personnel management, resource allocation, and evaluation of investment projects. The possibility of practical application of the method of analysis of hierarchies is limited by the requirement of complete certainty of alternative evaluations. Practical situations are characterized by uncertainty and limited information about the object or the decision-making process. Combining a systems approach with elements of fuzzy logic can correct this situation for the better. System models developed on the basis of the theory of fuzzy sets use the method of paired comparisons to rank management objects by factors and determine the importance of factors within the model. The article examines the algorithm for the synthesis of the vector of weighting coefficients of alternative decisions based on the matrix of pairwise comparisons with fuzzy estimates of alternatives. The possibility of combining elements of the theory of fuzzy sets and the method of analysis of hierarchies for the problem of decision-making is considered.

Scientific and methodological aspects of the choice of discount rate in the evaluation of investment projects

The article makes a scientific research of existing methodological approaches that have been formed in management. The article also analyses the causes of the collapse of investment projects, in particular in the construction industry, which threaten the stability of the functioning of national economies. All these researches give an opportunity to find the real causes of ineffective implementation of projects. The author offers a methodological approach to the formation of a holistic organizational structure of the socio–economic system, which has the goal to solve the problem of crisis phenomens in management. The author`s approach gives an opportunity to form organizational structure in an organic combination with the economic processes that take place in it and provide the qualitative formation of the organizational structure, which makes it possible to make control over each of its economic elements and ensure an absolutely effective management.
 Based on a systemic approach, the author considers the organizational structure as a dynamic system that consists from economic elements which necessary for the effective implementation of the purpose of the created structure. This approach to considering the organizational structure is different from the traditional one, in which the structure of the organization is a static system, the elements of which are only labor resources with defined functions.
 Consideration of the organizational structure as an integral system that consists from selected homogeneous economic elements which structure on the basis of normative model in which the management and managed subsystems are allocated, and also there are the main, auxiliary and service production in the managed subsystem gives an opportunity to form a normative model of the organizational structure which provides qualitative structuring of all its elements.

Scientific and methodological aspects of the choice of discount rate in the evaluation of investment projects

The article is devoted to the issues of evaluating the efficiency of investment projects, taking into account the justified and objective choice of the discount rate, which significantly affects the accuracy of the indicators of the economic efficiency of the evaluated investment project. In the conditions of an acute shortage of investment resources, the desire to increase the accuracy of the predictive assessment of the effectiveness of investment projects necessitates the search for new scientific and methodological approaches to the justified choice of the discount rate. In each specific situation, this choice depends on a large number of different factors, which are conditionally divided into two groups - internal and external. Unfortunately, in investment projects developed by Ukrainian enterprises, insufficient attention is paid to justifying the discount rate. The article provides an analysis of the main methods of determining the value of the discount rate when evaluating investment projects and scientific and methodological approaches to the selection of the discount rate in order to increase the objectivity of the predictive assessment of the feasibility of implementing an investment project. The essence of the advantages and disadvantages of such "traditional" methods of determining the discount rate of investment projects, such as the SARM model, the cumulative construction model, and the WASS model, are revealed. The effect of the intensity of exogenous factors in the form of the cost of credit resources, tax rates, inflation rates on the result of the assessment of the efficiency of the investment project has been specified. The main problems of justifying the economic efficiency of investment projects in the post-war recovery of the national economy are formulated. The author's rationale for the cumulative premium to the discount rate is given, due to the risk of speculative growth in the cost of construction caused by excess demand for construction work. The indicator of the expected duration of the portfolio of all orders of the construction enterprise, expressed in months, is proposed for use. On the basis of a cluster analysis of retrospective data, the linguistic terms of this meaning "deficit of orders", "partial..." and "sufficient security of the medium-term portfolio of orders" and their corresponding Gaussian membership functions are substantiated. An artificial intelligence system has been developed for forecasting the most likely percentage of speculative overestimation of the cost of construction works performed by the contractor, and the feasibility of using the output of this system as a cumulative premium to the discount rate has been proven.

Research on the optimal model for the evaluation of new power system investment projects based on the cloud model–DS evidence theory–TOPSIS method

AbstractConsidering that the traditional investment project evaluation system can no longer fully adapt to the characteristics of the new power system under the investment environment of the new power system, this study constructed a new power system investment project evaluation and optimization method based on the combination of the cloud model, evidence theory and the TOPSIS method. First, 16 evaluation indexes were considered based on four dimensions, namely green and low‐carbon, safe and reliable, flexible and intelligent, and economical and efficient, and the optimal evaluation index system of new power system investment projects was designed. Second, the normal cloud model was used to obtain the evaluation membership distribution of each index and turn it into evidence. Considering the conflicts between indicators and the combinational contradictions of traditional evidence theories, an improved DS evidence theory based on a game weight coefficient discount to reduce conflicting evidence was used to fuse the membership information of multiple indicators. On the basis of the evaluation results of each scheme, this study used the TOPSIS method to sort the advantages and disadvantages of each scheme. Finally, the project of planning and putting this model into operation in the 14th Five‐Year project database of a power grid enterprise was selected as an example to carry out empirical analysis, and the effectiveness and superiority of the proposed model were verified.

How to use real options in project evaluation

An option is a financial instrument that gives the opportunity, but not the obligation, to sell or buy a given financial asset, under predetermined conditions. When used for real (tangible) assets, then we are talking about a real option. The present paper will examine the advantages and disadvantages of using real options in the evaluation of investment projects. The analysis will be presented as a com- parison with traditional discounted cash flow methods. Net present valu (NPV) and other discounted cash flow methods are based on the presumption that expectations for the period of the investment project cannot be changed in the future. So once made, the investment decision remains unchanged. In contrast, real options enable these expectations to be viewed as time varying. This allows managers to be more flexible in their investment decisions

Učinci investicijskih projekata na samofinanciranje mjesnih Crkava u Africi

Dioceses need financial, material and human resources to organize worship, provide an honest livelihood for mission workersand fulfil their duty of charity and solidarity. This can’t be achieved with our hands always outstretched to the outside world. With a view to self-financing, several dioceses in Burkina Faso have launched investment projects. This article looks at the impact of investment projects on diocesan self-financing. To this end, we conducted surveys of 60 investment projects. Analysis of the results shows a positive effect. However, a number of shortcomings were noted, making this effect rather weak. To make it more significant, it is important for dioceses to invest in strategic areas, to improve the quality of their investments, to go further in their budgeting practices and to practice forward-looking management of the personnel assigned to investment project management. They also need to set up appropriate instruments such as a Strategic Investment Fund, a Catholic Investment Network and a Diocesan Office for Analysis, Monitoring and Evaluation of Investment Projects.

Methodological design of a strategy for the productive and sustainable development of communities in Cauca

Introduction:The productive and sustainable development in the department of Cauca depends to a large extent on the effective use of information and communication technologies (ICT). However, the institutional framework lacks mechanisms or methods to select investment projects with ICT resources. This situation has become an obstacle to economic growth and the improvement of social conditions in the region. Methods:In this article, the construction of a methodological design, one that allows for the selection and evaluation of projects with ICT resources that contribute to the solidarity economy of Cauca communities, is consolidated. The investigative process used a mixed approach, carrying out a systematic review of academic and political-organizational information, after which proposals and selection criteria used in Cauca in the last 5 years were analyzed.Results:With the information collected and analyzed, a route for the selection and evaluation of projects was compiled. Likewise, user stories were used to create a simulator that materializes the process of selecting and evaluating projects in a more efficient and effective way.Conclusions:In conclusion, the creation of the methodological design, materialized in the simulator, represents a valuable tool for the department of Cauca, since it allows for a rigorous and coherent evaluation of investment projects with ICT resources Originality:Promoting productive growth, the solidarity economy also contributes to sustainable development for the communities of Cauca.Limitations:The sample was limiteddue to the geographical location of the municipalities.

Research on the Methods of Investment Project Evaluation: Comparison of NPV, IRR and MIRR

Which one of Net Present Value and Internal Rate of Return is better to use in different fields is the focus of current research. This paper analyzes the limitations and uniqueness of the use of NPV and IRR based on current research. The research topic of this paper is the relationship and difference between NPV and IRR. The research method of this paper is as follows: firstly, through the description of NPV and IRR respectively, then collect the data and examples used by NPV and IRR, secondly analyze the data and examples, and finally, this study found that in different situations, the use of IRR and NPV also has different advantages and disadvantages, and there is still a gap in the comparative analysis of the use of NPV and IRR in different situations. Therefore, this paper will supplement the gaps in the comparison of NPV, IRR and MIRR with an analysis.

Оценки потребности в оборотном капитале при инвестициях в развитие здравоохранения

The spread of medical technologies underpins the transition to the next global economic mode and requires large-scale investments in health sector. To substantiate them, certain methods of making investment decisions which corresponds to a new stage of scientific and technological development are required. This paper proposes the methods of investment projects evaluation based on the cost and benefit analysis, that measures both costs and benefits in monetary terms, taking into account these approaches. On the one hand, economic (public) efficiency is determined with the social effects along with other public effects being highlighted. On the other hand, financial (commercial) efficiency is calculated with a detailed presentation of investment in working capital and terminal value. In applied project analysis, working capital is either not taken into account, or simplified methods are preferred. The paper focuses on the issues of modeling investments in the growth of net working capital. A comparative analysis of working capital modeling methods in the financial models of various international organizations (UNIDO, World Bank, Asian Development Bank) and official Russian methods is carried out. Also, the author's modified method for calculating investments in working capital based on separate financial turnover and liquidity ratios is proposed, which allows taking into account industry specifics of health projects. The system of the proposed methods was tested on the example of a real project of the construction of seven urban outpatient hospitals in Novosibirsk. The results of the financial analysis with three options of working capital accounting and the economic analysis with the presentation of social, tax and redistributive effects of working capital clearly show the impact of assessing working capital requirement on the results of not only financial, but also economic efficiency, including the efficiency of participation in the project. In the frame of the economic analysis, substantial social effects for patients of new outpatient hospitals and other residents of the Novosibirsk Region were highlighted, while in the frame of financial analysis, significant effects of working capital and terminal cost for direct project participants were identified.

Совершенствование организации процесса экономической оценки нефтегазового проекта за счет цифровизации

The article analyzes the process of organizing work on the evaluation of investment projects in an oil and gas company, highlights the stages of work on the justification of a rational option for field development, and gives a description of the software used. As a result of the analysis, the weak side of the digital contour of the stage of economic evaluation of the project on the basis of four criteria of the state standard of the Russian Federation is revealed. These are accuracy, productivity, safety and ease of use. Five alternative variants of IT innovations, including Russian and foreign ones, are considered. The oil and gas company’s own development “Atlas: In-vestment Evaluation” was recognized as the best, based on a weighted average assessment of seven criteria: compliance with global, industry-wide and sectoral requirements, software availability during the sanctions pe-riod, the ability to take into account industry specifics in calculations, and the minimum duration of implementa-tion of the new program and employee training. According to the IT innovation of the oil and gas company, aimed at improving the process of digitalization of the economic justification of projects, the effects of increas-ing the reliability and flexibility of work were revealed. Based on the Gantt chart, the reduction of labor intensity by evaluation stages is determined. The commercial efficiency of the process of improving the organization of work is substantiated.