Title | EVALUATION OF THE EFFECTIVENESS OF ALTERNATIVE BUSINESS PROJECTS FOR CHANGES IN THE DISCOUNT RATE OF CASH FLOWS AND TERMS OF THEIR USE |
Аuthor(s) | Trusova N.V., d.e.s., professor Dmytro Motornyi Tavria State Agrotechnological University |
Abstract |
The article considers approaches to assessing the effectiveness of alternative business projects based on dynamic methods that take into account the time factor. Some indicators that take into account the peculiarities of mutual exclusions from the projects of positive assessments of their implementation and lack of funds have been studied. The essence of each indicator is revealed, the characteristics and features of the calculation are outlined. It is noted that the choice of discount rate is an important step in making management decisions in the investment process. The expediency of using generally accepted names of indicators, in particular, net present value, internal rate of return is analyzed. Some components of the cost concept of investment projects are identified, which according to the author’s approach are considered the most significant. Structural elements that characterize the set of resources necessary for forecasting, implementation of the final results of the business project are substantiated. Peculiarities of commercial efficiency of business projects are determined. An iterative method of calculating the payback period for alternative business projects, characterized by interval investment in poultry, is proposed. The basic provisions of strategic and tactical directions of formation of investment model of enterprise development, ensuring its competitiveness, development of alternative projects and investment management, formation of effective investment policy of the business entity are developed. Appropriate cash flow structures and discount rates are proposed, which increase the efficiency of investment management of poultry industry enterprises. |
Keywords | investment project, discount rate, net present value, profitability index, payback period, internal rate of return. |
Download | pdf (C. 231-238) |