FEATURES OF SCHEMES OF FINANCING OF INVESTMENT PROJECTS AT MAXIMISATION OF THE PURE DISCOUNTED INCOME

A. M. Rytikov and S. A. Rytikov

Russian Journal of Industrial Economics, 2015, issue 2

Abstract: When alternative variants of investment projects are considered the preference is given to projects with greater net present value (NPV). Suggested simulation model with initially predetermined parameters gives possibility to find cash flows that generate maximum NPV. In this case the following issues are resolved: the issue of implementation priority of technology-independent manufacturing centers (lines); the selection of project external financing instruments, its terms, volumes and repayment period; the distribution of own and generated by project cash flows over periods of project life cycle. Necessity of additional limitations NPV (in particular, on loans and borrowing over periods of project life cycle) was identified during maximization of NPV that lead to its decrease.

Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ach:journl:y:2015:id:280

DOI: 10.17073/2072-1633-2009-2-59-71

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