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 89
- Downloads 0
HIGHLY QUALIFIED WORKING FORCE – KEY ELEMENT OF INNOVATIVE DEVELOPMENT MODEL
Highly qualified working force is a central element of intensive development model in modern society. The article surveys the experience of countries that managed to transform their economy to the innovative one. Ukraini...
RESEARCH OF EXISTENCE OF RELATIONSHIP BETWEEN VARIABLES BY THE METHOD OF CONDITION – CONSEQUENCE DECOMPOSITION OF EVENTS
In the work a classification of types of interdependence between events on the basis of original method of their modeling – condition – consequence decomposition of events – is resulted. Determination "an attribute of a...
IMPLEMENTATION OF BASEL III IN THE EUROPEAN BANKING SECTOR
In this work, which is part of a larger research project aimed at the expected impact of Basel III on commercial banks in Romania, I decided to analyse the implementation and transposition of the new international pruden...
MODERN METHODS OF PRICING IN THE STRATEGIC ACTIVITIES PLANNING OF PHARMACEUTICAL COMPANIES IN UKRAINE
This article investigated the role of pricing for strategic activities of pharmaceutical companies. It has been modified Bass diffusion model for new products, and it has been conducted empirical testing of the model on...
INTERDISCIPLINARY APPROACH AS A PREREQUISITE FOR THE DEVELOPMENT OF ECONOMICS AND EDUCATION
Phenomena and processes that are behind the scenes of interdisciplinarity is sufficiently complex, multifaceted and varied, and therefore difficult to give a detailed description of this phenomenon in one, although wide...