7. Evaluating the solutions effectiveness

1. 7. Evaluating the solutions effectiveness

USTSINOVICH IRINA
MANAGERIAL ECONOMICS
7. EVALUATING THE SOLUTIONS
EFFECTIVENESS

2. 7. Evaluating the solutions effectiveness

7. EVALUATING THE SOLUTIONS EFFECTIVENESS
1. Procedure and methodology for drawing up an investment plan
2. Methodology for evaluating investment projects
3. Alternative projects analysis
Ustsinovich I.V.

3. 1. Procedure and methodology for drawing up an investment plan

1. PROCEDURE AND METHODOLOGY FOR DRAWING UP AN
INVESTMENT PLAN
Ustsinovich I.V.

4. Concept

CONCEPT
Investments are any property and other civil rights assets held by the investor on the
right of ownership invested by the investor in order to generate profit (income) and/or
achieve other meaningful results or for other purposes not related to personal, family,
home and other such uses.
Investment activity is a set of practical actions of legal entities, citizens and the state to
implement investments.
Ustsinovich I.V.

5.

THE INVESTMENT PLAN
The investment plan includes the calculation and
justification of:
• fixed-asset investment;
• cost increase in net working capital;
• financial costs.

6.

TOTAL INVESTMENT COSTS
Total investment costs are defined as the amount:
• а) investment in fixed assets (capital expenditures) including value added tax
• b) cost increase in net working capital
In the business plan, the total investment costs and their sources of financing are shown in a table:
• Table of total investment costs and sources of financing

7. Total investment costs

TOTAL INVESTMENT COSTS
Total investment costs:
Capital expenditures (VAT-free)
Pre-investment costs
Acquisition and installation of fixed assets objects
Pre-production costs
Other investment costs
Vat (tax)
Increase in net working capital (difference
between working capital by year)

8. Net working capital calculating

NET WORKING CAPITAL CALCULATING
• Net working capital is the difference between short-term
assets and short-term liabilities.
• Short-term assets are assets that the company is going to
turn into cash in the near future.
• Short-term liabilities are liabilities that it intends to pay off in
the near future.

9.

2. Average daily demand
for raw materials, ruble,
d
20,0
Notes, the principle of calculation
Determined based on the consumption rate in materials and
the planned volume of output
Determined by dividing the annual need for materials by the
number of calendar days per period