Analysis of financial effectiveness of economic-mathematical model of investment projects

DOI

10.2991/ttiess-17.2017.20How to use a DOI?

Keywords

mathematical model; investment sources; capital investments; objective function; payback time equation; payback period

Abstract

To ensure long-term financial stability and enterprise sustainability, executives need a strategic approach in solving financial problems, in effective ways of investing and in creating models for investment analysis and forecasting. The offered mathematical model allows one to provide optimization of decisions in strategic management of investments. The technique of using several sources of financing as part of an investment portfolio is described. Various combinations of sources of financing for different terms of crediting are considered. There are different methods of making decisions on investment projects, based on the analysis of various criteria, which fall into two broad categories: conventional (not discounting) and discounting. The main function of the funds invested in the project is the generation of such cash flows which allow predicting the investment attractiveness of the project and efficiency. The author is interested in the dynamics of the cash flow generation process, which is ensured by the use of discounting. Investment projects have different qualitative and quantitative characteristics: financial, technological, organizational, temporary, etc. All of them are important, but financial assessments of investment policy are crucial in many cases. The author examines the criteria that are crucial for characterizing the investment process. The use of economic and mathematical models makes it possible to take into account various requirements, conditions, and to obtain variants of investment project scenarios. These criteria characterize the project's own effectiveness in generating cash flows, which is large compared to other weight criteria in proving project feasibility.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - R.R. Chernyatieva
PY  - 2017/06
DA  - 2017/06
TI  - Analysis of financial effectiveness of economic-mathematical model of investment projects
BT  - Proceedings of the International Conference on Trends of Technologies and Innovations in Economic and Social Studies 2017
PB  - Atlantis Press
SP  - 115
EP  - 120
SN  - 2352-5428
UR  - https://doi.org/10.2991/ttiess-17.2017.20
DO  - 10.2991/ttiess-17.2017.20
ID  - Chernyatieva2017/06
ER  -