Development of methodological principles of evaluation of investments effectiveness

Abstract

Introduction. The article is dedicated to improving the methodological principles of evaluation the effectiveness of investments. Particular attention is paid to development and calculation of economic benefits and costs, consideration of the time factor at different stages of life cycle of long-term innovation and investment projects. It gives a possibility to assess their effectiveness more reasonably.

Purpose. The aim of the article is to develop methodological approaches to evaluation the effectiveness of investment and innovation projects to ensure a correct account of the time factor and the maximum consideration of possible economic benefits and costs which accompany the innovation and investment activity.

The method (methodology). The methodological basis of the study is a set of scientific methods. They are the method of theoretical generalization, method of comparison, method of modelling, method of detailing, method of grouping, systems and factor methods, method of economic costs and benefits.

Results. Conceptually new approach to economic evaluation of investment efficiency has been developed. It combines the elements of payback method and techniques of differentiated account of influence of time on different stages of innovation and investment projects. A division of life cycle of the project into three stages (phases) has been proposed. Among these stages we can distinguish the following ones: implementation of the investment costs (construction), payback period (rehabilitation) and postrecoupment (main operational) periods. The appropriate procedures should be applied in each period. We have to take into account of the time factor and different discount rate and rate of return, risks for real investment market and for alternative securities market for each period.