CHARACTERISTICS OF MIRR METHOD IN EVALUATION OF INVESTMENT PROJECTS' EFFECTIVENESS
Journal Title: Вісник Київського національного університету імені Тараса Шевченка. Економіка. - Year 2014, Vol 8, Issue 161
Abstract
This scientific paper describes some aspects of the current researches' status concerning methodological tools of investment projects' evaluation based on compounding and discounted cash flow. Also there were defined some problems of its application in practical business activities. There were analyzed characteristics of the Modified Internal Rate of Return method in the evaluation of investment projects, restrictions connected with its application, advantages and disadvantages compared with indicators of the original Internal Rate of Return and Net Present Value for projects with certain baseline characteristics. There were determined the opportunities to adapt the method of Modified Internal Rate of Return to alternative computational approaches of the project cash flows evaluation. There were considered possibilities of the Modified Internal Rate of Return method in a comparative analysis of real investments, which are not comparable in scale and duration of implementation. There were expressed concerns about appropriateness of the Modified Internal Rate of Return method's wide application in project analysis to determine the attractiveness and feasibility of investment alternatives. There were outlined basic recommendations for the further research on this subject, directions to improve methods of the effectiveness of investment projects' evaluation based on cash flows' compounding.
Authors and Affiliations
Pavlo Kukhta
Keywords
Related Articles
- EP ID EP404145
- DOI 10.17721/1728-2667.2014/161-8/11
- Views 72
- Downloads 0
CLASTER ANALYSIS IN MODELING FOOD SECURITY AT THE REGIONAL LEVEL
Based on the statistical data for regions of Ukraine with the use of cluster analysis by k-means classification of regions of Ukraine on the structure of consumption of basic foodstuffs. Analyzed the relationship between...
LABOR MARKET IN WORLDWIDE GREENING ECONOMY: RESTRUCTURING AND DEVELOPMENT PROBLEMS
Labor market is affected by ecologization processes in economy both nationally and globally. Positive and negative effects of this process are analyzed in this article. We defined 5 main areas where labor market is affec...
CORPORATE SOCIAL REPORTING AS APPENDIX TO FINANCIAL STATEMENT
The paper deals with essence and importance of corporate social reporting in the management of business entity management. The study examines several approaches for providing data about economic, ecological and social as...
CENTRAL BANK TRANSPARENCY AND EVALUATION OF MONETARY POLICY COMMUNACATIONS
Central banks transparency has increased rapidly in recent time. This paper focuses on structured review of the theoretical literature on transparency evaluation. It proposes a comprehensive analysis of measuring transpa...
METHODOLOGICAL APPROACHES TO THE ANALYSIS OF EFFICIENCY OF CASH FLOW MANAGEMENT IN INVESTMENT ACTIVITY OF THE ENTERPRISES
The article explores the methodological approaches to the analysis of cash flows in investment activity of the enterprise; the system of motion net cash flows, reflecting the impact of cash management efficiency on the a...