Investment project is a plan for the implementation of a set of measures aimed at the creation, acquisition or modernization of physical objects and technological processes, scientific research and financial transactions. A real investment project must have a technical justification, be interconnected in terms of resources, deadlines and performers.

Each project is pre-screened experts. First of all, the project is evaluated from the point of view of its feasibility both in economic and technical aspects, i.e. a preliminary feasibility study of the project (PTES) is being considered. If the preliminary assessment of the project is positive, then proceed to a more detailed study of the project. The value of pre-assessment is to screen out projects with little chance of success in a timely manner in order to save the cost of costly project research.

One of the important stages of project evaluation is related to the determination of the investment risk of the project. The investment risk of a project is a complex concept that includes various types of risks. Each stage of investment implementation is characterized by specific types of risks, which are both internal and external. The assessment of the total risk for the project is carried out on the basis of aggregated data for its individual stages. In specific Russian conditions, the following can be distinguished main types of investment risks:

• insolvency associated with non-fulfillment of contractual obligations by business partners;
• financial support of the project, associated with the untimely receipt of investment resources from individual sources, with the risk of underfunding due to an increase in the cost of financing the project;
• financial instability of the enterprise, due to the imbalance in the flow of equity and debt capital;
• tax related to possible changes in tax legislation;
• inflationary, associated with a possible decrease in income in real terms;
• interest associated with a change in the discount rate of the Central Bank of Russia and, as a result, a change in the interest rates of commercial banks;
• marketing - the risk of shortfall in investment income at the stage of project operation, caused by circumstances affecting the volume of sales and operating costs;
• criminogenic, due to the lack of proper protection of private property rights.

Comprehensive assessment of the investment project, i.е. its feasibility study (feasibility study) is carried out in accordance with the requirements of regulatory enactments.

Based on the definition that investment is a long-term investment of economic resources with the aim of creating and receiving benefits in the future, then the main purpose of this investment is to convert the investor's own and borrowed funds into assets that, when used, will create new liquidity. Such a definition of the concept of "investment" includes all types of investment and corresponds to the goals and objectives of investment projects.

Creation and implementation investment project includes the following stages:

• formation of an investment plan;
• study of investment opportunities;
• feasibility study (feasibility study) of the project;
• preparation of contract documentation;
• acquisition or lease and allotment of a land plot;
• preparation of project documentation;
• construction and installation works;
• operation of the facility, monitoring of economic indicators. Formation investment plan (idea) provides for:
• choice and preliminary justification of the plan;
• innovative, patent and environmental analysis of a technical solution (object of equipment, resource, service) provided for by the planned project;
• verification of compliance with certification requirements;
• preliminary approval of the investment plan with federal, regional, municipal and industry authorities;
• preliminary selection of enterprises and organizations capable of implementing the project;
• preparation of an information memorandum in which the subject of investment activity, i.e. enterprises, organizations that make investments inform about the preparation for the implementation of the investment project.

One of the stages of the analysis of an investment project is a pre-project study and assessment of investment opportunities. (business plan). At this stage, the following work is performed:

• marketing research is carried out, during which it is necessary to decide how much and at what price it is possible to sell the products provided for by this project;
• proposals are being prepared on the organizational and legal form of the project implementation and the composition of participants;
• the costs of the project are estimated and the sources and amounts of financing are determined;
• the availability of a raw material base and the cost of delivery of raw materials are assessed;
• collects information on legislative and regulatory acts that are relevant for the implementation of the project;
• Preliminary estimates are being prepared for the sections of the feasibility study (FS) of the project;
• preparation of contract documentation for design and survey work.

At the preliminary stage of consideration of an investment project, it is of fundamental importance project viability assessment, which is understood as the result of a comparison of various existing project options in terms of their cost, implementation time and profitability. A project viability assessment should provide answers to two fundamentally important questions:

• 1) Will the investor be able to provide the project with financial resources without interruption?
• 2) Is the project able to provide a stream of income that could reimburse investors for their financial resources, given the risk they have taken?

If there is only one or several alternative project options, the so-called situation “without a project” or “without building a new enterprise” is taken as the basis for comparison. In the first case, this means that the production and financial results of an existing enterprise are compared before and after reconstruction. In the second case, the hypothetical production and financial results of a new enterprise built according to the proposed project are compared with the indicators of an existing enterprise. After determining the viability of the investment project, it is necessary to determine project value, i.e. results after implementation. To do this, determine the difference between the change in benefits and the change in costs as a result of its implementation.

The main design document when considering the facility construction plan is a feasibility study (feasibility study) of the project. The feasibility study determines the main decisions: technological, space-planning, constructive, environmental; the environmental, sanitary-epidemiological and operational safety of the project, its economic efficiency and social consequences are assessed.

Feasibility study contains budget and financial documentation, including: calculation of capital costs, estimation of production costs, calculation of annual income from production activities (enterprise), calculation of the need for working capital, sources of project financing, estimated needs in foreign currency, selection of creditors. In addition, the feasibility study should contain an assessment of the risks associated with the implementation of the project and the timing of its implementation. The feasibility study consists of following sections:

• general explanatory note;
• master plan and transport;
• technological solutions;
• management of production (enterprise) and organization of conditions and labor protection for workers and employees;
• engineering equipment, networks and systems;
• organization of construction;
• environmental protection measures;
• measures to prevent emergency situations;
• budget documentation;
• evaluation of investment efficiency.

The feasibility study is undergoing non-departmental environmental and other types of expertise. Based on the feasibility study and expert opinions, decisions are made on investing in an investment project.

Simultaneously with the preparation of the feasibility study, the preparation of a business plan, contract and working documentation is carried out.

Business plan- this is a detailed document that sets out the goals and objectives of the investment project, the methods of its implementation and the technical and economic indicators of the enterprise or project after its completion.

Contract Documentation includes:

• preparation of tenders and, based on their results, preparation of contract agreements;
• terms of tenders for further design and development of technical documentation.

When preparing working documentation, design estimates (working drawings) are made, manufacturers and suppliers of non-standard technological equipment are determined.

At the final stage of the implementation of the investment project, construction, installation and commissioning work is underway, as well as the production of an experimental batch of products. After the completion of the construction of the facility and the start of its normal operation, the current monitoring of the functioning of the established enterprise is carried out, i.e. production and its economic indicators.

The concept of "investment project" is a system of measures deployed in time for a significant renewal or creation of fundamentally new individual components of the enterprise's activities. The components of any investment project are direct participants (individual / legal entity), an organization or a group of persons interested in it. The last link in this structure can refer to both the macroeconomic level and the mesolevel, as well as the microeconomic level.

At this link you can download the most complete investment project (example with calculations in Excel). Calculation results are available for testing, formulas are “visible” (it is easy to check which formula was used, which data it refers to).

The project needs to create a structure diagram like this:

• the author of the idea;
• content author;
• investors;
• enterprise (group of enterprises) to which the project is directed;
• consumers targeted by the project.

For an example of investment projects, you need to rank the sequence of all structural elements. This system performs the following functions:

• decision support for development and selection;
• optimal business development plan; creation of financial plans and investment projects;
• modeling the activities of enterprises of various forms and structures.

In an investment project, a very important integral part is the exact determination of its duration, for example, 1 year or 2-3 months. The date of the "launch" of the investment project is also important.

We draw up an investment project using an example

Name:	"Creation of a livestock farm of a full production cycle."
Documentation:	business plan, marketing research of the agricultural industry market.
Project budget:	40 000 USD.
Field of activity:	Agriculture.
Sources of financing:	personal funds, credit funds.
Targeting:	creation of a livestock farm of a full, production cycle on the basis of an existing agricultural enterprise.
Direction:	commercial.

If we are talking about a specific example of an investment project, then there is a detailed description of all stages of the implementation of the project plan, the concept, novelty, efficiency, ways to achieve it. It should be noted that a typical example may be a business plan of the investment project itself as a whole, or part of it. A project can include up to ten sections:

1. initial data,
2. market assessment,
3. financial assets
4. production,
5. human resources,
6. territorial location of investment objects,
7. project documentation,
8. organization and expenses
9. the timing of the implementation of plans,
10. business performance evaluation.

An example of a construction project: "Sanatorium-resort complex (SCC)". Even such an ideally planned business project in all respects, without an investor, remains unrealized.

Formation of the structure of the investment projecta

Another example of a formalized investment project is the following structure:

• company,
• concept essence,
• capital investment plan (technical and permitting documentation, network deployment costs, etc.),
• production dates,
• implementation timeline,
• ways of realization and sale, materials and components,
• general costs and personnel plan,
• financing.

The structure should depend directly on the specifics of the investment object, the scope of implementation, etc. These examples of investment projects do not take into account the financial side of business projects. It is important that the current financial condition determines the balance of the launch date for the project. This factor directly affects the amount and direction of cash flows. In this regard, the return on investment is determined. Compiled examples need to have descriptions of the volume and form of investment. A brief summary of the essence of the proposal is mandatory. The summary means the detailing of the main features of the development pre-determined by the project itself. Many companies, specialists provide services for the development of investment projects or their analysis, and as a result of correction for maximum efficiency.

The definition of an investment project is given in Federal Law No. 39-FZ, as well as in the "Methodological recommendations for assessing the effectiveness of investment projects" (No. VK 477, approved by the Ministry of Economy, the Ministry of Finance and Gosstroy of the Russian Federation on 06.21.99). It should be borne in mind that in the "Methodological recommendations ..." the concepts of "project" and "investment project" are introduced separately. Thus, the term "project" is understood in two senses:

A set of documents containing the formulation of the goal of the forthcoming activity and the definition of a set of actions aimed at achieving it;

The complex of actions (works, services, acquisitions, management operations and decisions) aimed at achieving the stated goal; that is, as a documentation and as an activity. In the future, in all cases, except where otherwise specified, the term "project" will be used in the second sense.

An investment project (IP) in the "Guidelines..." is defined in the Law "On Investment Activity..." as a rationale for the economic feasibility, volume and timing of capital investments, including the necessary design and estimate documentation developed in accordance with the legislation of the Russian Federation and duly approved standards (norms and rules), as well as a description of practical steps for making investments (business plan).

In other words, according to this definition, an investment project is, first of all, a comprehensive plan of measures, including design, construction, acquisition of technologies and equipment, training of personnel, etc., aimed at creating a new or modernizing the existing production of goods (works, services ) for the purpose of obtaining economic benefits. An investment project is always generated by some project (in the sense of the second definition), the rationale for the expediency and characteristics of which it contains. In this regard, under certain properties, characteristics, parameters of the IP (duration, implementation, cash flows, etc.) in the "Methodological recommendations ..." refers to the corresponding properties, characteristics, parameters of the project that generates it.

The classification of investment projects can be carried out according to several criteria. So, depending on their mutual influence, investment projects (IP) can be divided into:

Independent, when the decision to accept one project does not affect the decision to accept another. In order for investment project A to be independent of project B, two conditions must be met:

There must be opportunities (technical, technological) to implement project A, regardless of whether project B is accepted or not;

The cash flows expected from project A should not be affected by the acceptance or rejection of project B.

Sometimes a firm cannot carry out two projects at the same time due to lack of funds. In such a situation, the acceptance of one project will entail the rejection of the second.

However, it would be wrong to call projects dependent only on the grounds that the investor does not have enough funds for their joint implementation.

If the decision to implement one project has an impact on another project, that is, the cash flows for project A change depending on whether project B is accepted or rejected, then the projects are considered dependent. Such projects can also be divided into the following types:

Alternative (mutually exclusive), when two or more analyzed projects cannot be implemented simultaneously, and the acceptance of one of them automatically means that the remaining projects cannot be implemented. For example, on an allotted plot of land, either a workshop, or a canteen, or a parking lot for cars can be built: the acceptance of one of these projects automatically makes the implementation of others impossible;

Complementary, when the implementation of several projects can only take place jointly. At the same time, complementary projects can be divided into:

Complementary, when the adoption of one investment project leads to an increase in income from other projects;

Substitution-related projects where the acceptance of a new project results in some reduction in revenue for one or more ongoing projects.

Identification of relations of complementarity and substitution implies the prioritization of investment projects not in isolation, but in combination, especially when the acceptance of the project according to the chosen main criterion is not obvious.

According to the timing of implementation (creation and operation), IP can be divided into:

Short-term (up to 3 years);

Medium-term (3-5 years);

Long-term (over 5 years).

When classifying projects according to their scale, it should be taken into account that the scale of the project characterizes its social significance, which is determined by the impact of the results of the project on at least one of the internal or external markets (financial, goods and services, resources), as well as on the environmental and social situation. From this point of view, it is recommended to subdivide projects by scale into:

Global, the implementation of which significantly affects the economic, social or environmental situation on Earth;

Economic, influencing the whole country as a whole or its large regions (Urals, Volga region); and when evaluating them, one can limit oneself to taking into account only this influence;

Large-scale, covering individual industries or large territorial entities (subject of the Federation, cities, districts); and when assessing them, it is possible not to take into account the impact of these projects on the situation in other regions or industries;

Local, the action of which is limited to the scope of a given enterprise implementing IP. Their implementation does not have a significant impact on the economic, social and environmental situation in the region and does not change the level and structure of prices in the commodity markets.

According to the main focus, projects can be divided into:

Commercial, the main purpose of which is to make a profit;

Social, focused on solving, for example, the problems of unemployment in the region or the social adaptation of former military personnel, etc.;

Ecological, the main focus of which is to improve the living environment for people, as well as flora and fauna.

Investment cycle

The period of time between the start of the project and its liquidation is commonly called the investment cycle. The investment cycle is usually divided into phases, each of which has its own goals and objectives:

Pre-investment - from preliminary research to the final decision on the adoption of an investment project;

Investment - including design, conclusion of an agreement or contract, contract for construction work, etc.;

Operational (production) - the stage of economic activity of the enterprise (object);

Liquidation - when the consequences of the IP implementation are eliminated.

The pre-investment phase includes several stages:

a) identification of investment opportunities;

b) analysis using special methods of alternative project options and project selection; c) conclusion on the project;

d) making a decision on investment.

Each stage of an investment project should help prevent surprises and possible risks in subsequent stages, help find the most economical ways to achieve the desired results, and develop it.

At the pre-investment phase, it is necessary to formulate an investment plan (identify the project). Ideas for the implementation of an investment project appear in connection with the unsatisfactory demand for goods and services, the availability of temporarily free funds, the desire to realize entrepreneurial abilities, etc. As a rule, several options for a business idea are considered and options that involve high cost, excessive risk, lack of reliable sources of financing are rejected.

The investment intention is reflected in the Declaration of Intent. The Declaration contains information about the investor, the location of the facility, the technical and technological characteristics of the investment project, the need for various resources (labor, raw materials, water, land, energy), sources of financing, the impact of the facility on the environment, marketing of finished products.

The next required document is the Justification of Investments. This document is developed taking into account the requirements of state bodies and must necessarily pass an examination. The Investment Justification reflects the general characteristics of the industry and the enterprise, the goals and objectives of the project, the characteristics of facilities and structures, the provision of resources, the current state and forecast of the product market, the project management structure and the assessment of the effectiveness of the investment project.

This document serves as the basis for registration, if necessary, the act of choosing a land plot. As part of the investment justification, the question of the viability of the project is considered. The viability of the project is evaluated in terms of cost, implementation time and profitability. Evaluation allows you to identify the reliability, payback and effectiveness of the project. The viability of a project means its ability to generate cash flows not only to compensate for the invested funds and risk, but also to make a profit. As a rule, the evaluation is carried out using methods for analyzing the effectiveness of projects.

When making a decision on investing money in a project, project expertise plays an important role. Examination is an assessment of the project in order to prevent the creation of objects, the use of which violates the interests of the state, the rights of individuals and legal entities, or does not meet the established requirements of standards, as well as to determine the effectiveness of ongoing investments. Investment projects that are carried out at the expense or with the participation of the budget of various levels, which require state support or guarantees, are subject to state comprehensive examination.

Expert subdivisions of ministries and departments carry out an examination of projects on the feasibility of the project, on its compliance with urban planning, sanitary, environmental, social requirements. The work on the examination is carried out by a group of experts, which prepares an opinion, which contains the final conclusions on the feasibility of the project, as well as an assessment of the technical, financial, economic, environmental and social aspects of the project.

The final stage of pre-investment studies is the development of a feasibility study (FS). A feasibility study is a set of calculation and analytical documents that reflect the initial data on the project, the main technical, technological, calculation and estimate, appraisal, design, environmental solutions, on the basis of which it is possible to determine the effectiveness and social consequences of the project.

A feasibility study is a mandatory document when financing capital investments from the state budget (in full or on an equity basis), centralized funds of ministries and departments, and own resources of state enterprises. The development of a feasibility study is carried out by legal entities and individuals who have received a license to perform the relevant types of design work.

In practice, there is no single, universal model of feasibility study. But foreign and domestic experience allows us to give an approximate structure of the sections of the feasibility study:

1. Background and main idea of ​​the project.

2. Market analysis and marketing strategy.

3. Provision of resources.

4. Location of the investment object and the environment.

5. Design and technology.

6. Organizational chart and enterprise management. Investment management in the field of real investments.

7. Labor resources.

8. Project implementation.

9. Financial analysis and investment evaluation.

10. Summary.

The investment phase consists in making strategic planning decisions that should allow investors to determine the volume and timing of investment, as well as draw up the most optimal project financing plan. As part of this phase, contracts and work contracts are concluded, capital investments, construction of facilities, commissioning, etc. are carried out.

The operational (production) phase of the investment project consists in the current activities of the project: the purchase of raw materials, production and marketing of products, marketing activities, etc. At this stage, direct production operations are carried out related to mutual settlements with counterparties (suppliers, contractors, buyers, intermediaries), which form cash flows, the analysis of which allows us to evaluate the economic efficiency of this investment project.

The liquidation phase is associated with the stage of completion of the investment project, when it has fulfilled its goals or exhausted its capabilities. At this stage, investors and users of capital investment objects determine the residual value of fixed assets, taking into account depreciation, evaluate their possible market value, sell or conserve retired equipment, and, if necessary, eliminate the consequences of the implementation of IP.

The liquidation phase can also occur in the event of a premature closure of the project, regardless of the degree to which the goals have been achieved. Such a decision may be caused by a change in the investor's plans, lack of funds for the implementation of the project, errors in calculations, the emergence of alternative projects, etc. If there is a potential possibility of resuming the project, the closure process should include preparation for the future restoration of the organizational structure of the project and the possibility of resuming work. When a project has come to a normal or premature end, the problem of its closure should be treated as a special project, a one-time unique task with specific resource constraints.

Source - Maksimova V.F. Investment management: Educational and practical guide. – M.: Ed. EAOI center. 2007. - M., 2007. - 214 p.

An investment business project is a set of measures aimed at profitable investment of funds in order to make a profit in the short term. The number of investment objects is quite wide. They may differ depending on different criteria, such as:

• amount of financial resources;
• scale;
• area of ​​activity;
• duration and so on.

Regardless of the specifics of the project, it will necessarily have four components: the implementation period, the amount of expenses, cash flow and liquid value. Interest in the direction is determined by the relationship of these 4 components.

Each project has a certain list of indicators of its effectiveness and evaluations, which are calculated throughout the entire period of its existence. General data must contain:

• Description of the direction of activity, the composition of the proposed product or service specification.
• Information about the location of the production or company.
• Information related to the specification of the production technology or the specifics of the provision of services.
• List of necessary resources for the implementation of activities.

Any project must be accompanied by papers that clearly describe the direction of investment movement with terms inclusive. An important parameter of each object for investment is the balance of material resources. It is calculated on the basis of the difference between the receipt of money and their expenditure during each investment period.

Project development for investment

Any investment project is activated even before the implementation of the actions provided for in the relevant documentation. Its completion is also carried out much later than the predetermined deadlines. There are only two stages of the investment cycle:

• Pre-investment, without a clear time frame. At this stage, marketing research is carried out, sources of resources for the implementation of activities are determined, active negotiations are held with potential partners, and legal registration of the enterprise is carried out. The result of the entire complex of works done is a detailed and detailed investment plan-project, in other words, a business plan.
• Operational stage. It starts with the first actual actions. This is the purchase of equipment, the lease or purchase of real estate, the conclusion of partnership agreements, and so on. The general characteristics of the project are directly related to the duration of this stage.

Many experts insist that the investment project has one more phase, which is transitional between the two described. The investment phase is a broad list of tasks related to case management. This includes the formation of financial and legal foundations, the solution of organizational problems. At this stage of work, management and administration are appointed, staff is hired and trained.

External environment as one of the risk factors

Evaluation of investment projects is a generalized concept, which is quite often separated from the external environment in which the project operates and develops. The relationship of the components is distinguished by the presence of two important consequences:

• Employees or project managers must easily adapt to any changes, regardless of the time of their occurrence.
• Managers of the enterprise should, whenever possible, influence the change in the external environment to the benefit of the project.

The effectiveness of the investment project will also depend on how detailed and carefully the external potentially important factors of influence were assessed and controlled. Experts recommend paying attention to such points as inflation and the possibility of implementing the project in any of the currencies of the world, the prospects for modifying the taxation system and raising or lowering interest rates. Among the secondary external factors, on the basis of which the evaluation of the effectiveness of investment projects should be carried out, it is necessary to include the infrastructure of the region where the facility is located, and the regional regulatory framework, the attitude of federal and municipal authorities to the implementation of a certain type of activity.

Project evaluation

The specifics, stages and features of using the values ​​of the economic efficiency of projects are constantly changing and require systematic study. This is based on two trends. According to one of them, an investment project can act either as an independent unit for evaluation, or in the format of an element of property, which, in a costly variant, is evaluated together with technical and intellectual resources. The second direction involves an assessment with the aim of buying or selling property in the future. The potential owner of the object considers the direction for investment, comparing the estimated amount of investments with income, costs and the actual price. The discounting process in this situation will be implemented in the format of a profitable approach, which requires constant adjustment.

Evaluation of investment projects can be carried out on the basis of a large number of factors. This is the situation on the investment market, and the actual state of affairs in this area, and the professional interests and abilities of the investor, and the financial viability of the project itself, and geopolitical factors, and much more. This is something that has to do with the personal preferences and interests of the investor. In practice, universal schemes and formulas are used, which, in numerical values ​​and in material terms, are able to clearly reveal the attractiveness of a particular direction. Clear calculations allow you to get an objective answer to the question of whether the project in which you plan to invest money is capable of bringing good profits that easily cover any costs.

A simple form of investment calculation

Financing investment projects from the point of view of the owner of capital is a refusal to receive momentary profits for the sake of higher incomes in the future. The problem of assessing the attractiveness of the direction lies in the multilateral analysis of investments and the cash flow that they must provide. The task of the analyst is to determine how the expected results of the activity of a particular object correspond to the expectations of the investor himself. Making a decision regarding investment is allowed only if there is information on full reimbursement of expenses, on the correspondence of the amount of additional profit to the level of risk, on the probability of achieving the set goal.

The calculation methods of investment projects are divided into simple (or statistical) and complicated ones, based on changes in the value of money in a certain time period. Simple assessment methods were widespread in Soviet practice. The economic rationality of material injections was based on a system of indicators that corresponded to the actual conditions of management. This may include:

• Investment efficiency ratio. Formula: project efficiency = annual profit: investment amount.
• Payback period. Formula: payback period = investment amount: annual profit.
• Comparative economic efficiency based on cost minimization. Formula: economic efficiency = current expenses + normative coefficient of efficiency - capital investments for each of the options.

The investment process has a unique characteristic - a gap in time. From the moment of investing funds to the moment of receiving profit on hand, a certain period of time must pass. The calculation of an investment project according to a simple, domestic scheme is biased, since it misses such a significant aspect as time.

A complex form of calculating the profitability of the project

The adoption of market relations and new legislative acts in relation to investment activity opened up new spaces for investors to work:

• A wide range of objects for investment.
• Additional criteria for assessing areas for investment.
• Unique funding sources.
• Deep criteria for objects that allow you to evaluate the effectiveness of an investment project.
• The ability to use the results of the work in a variety of ways.

Hence a simple conclusion - when evaluating any project, it is important to take into account external factors. The essence of a complex valuation method is based on the fact that cash flows for income and expenses are not evaluated as a whole, but are completely independent values. An objective assessment is possible only when the costs of a particular project are compared with the profit at the time of the costs. Thus, the risks of investment projects are taken into account, incomes are discounted. Economic evaluation allows you to determine the attractiveness of the direction in comparison with other industries available for investment. Project evaluation using a complex methodology involves the study of such indicators as:

• Payback period.
• Net worth at a given point in time.
• Rate of return (or profitability ratio).
• Internal rate of return.
• Profit rate of financial management.

A rational assessment of the sphere of investment in the modern economy can only be made taking into account the entire range of indicators. The economic essence of each direction is different. The analyst has access to information about different facets of the project, which makes it possible to make a decision solely by comparing all the values.

Project efficiency: types and specifics

The implementation of investment projects is allowed only after their comprehensive assessment, which can be carried out on the basis of a number of criteria, ranging from scale to investor interest. The main indicator of the profitability of the direction is efficiency. Rationalism allows in the future to receive from investments not only economic benefits, but also non-economic ones, in particular, the removal of social tensions.

• Overall efficiency, which is subdivided into socio-economic and commercial.
• Efficiency of participation, including efficiency for enterprises, for investors who will buy shares in the future, for large companies and even for government agencies.

What dictates the modern market economy?

Any investment project in today's market economy must be considered simultaneously from a large number of parties. The principles and methods that allow for direction analytics are as follows:

• Modeling the flow of funds, resources and products with services.
• Analysis of the market with the financial condition of the enterprise inclusive.
• The level of trust in the project management.
• The impact of the project being implemented on the environment.
• Comparison of future expenses with results. It is based on orientation and on achieving a rate of return in accordance with the amount of capital.
• Calculation of potential expenses and incomes, their commensurability and economic value at the initial stage of the project implementation and at its final stage.
• Estimation of the probability of impact on the situation of inflation. Including risks associated with delayed payments and other issues that may have a direct impact on the value of the material resources used.
• Consideration of uncertainty, including the risks of investment projects.

Comprehensive analysis and risk minimization

After calculations and creating a business plan, it is necessary to answer the question of whether the enterprise is able to fully implement the idea. A rational answer helps to find a comprehensive analysis of the economic sector within which this project exists. An assessment of competing organizations in this direction is important. For Western countries, it is typical to evaluate the industry as a whole using the following criteria:

• direction maturity;
• the place that the company occupies in a particular segment of activity.

Estimating the level of competitiveness of the project in the target segment, it turns out not only to determine its life cycle. The most effective areas for investing funds are opened before investors, which will allow raising the organization to a higher level. The stage of preliminary assessment of the object, although not delayed for a long time, is very important. With a wide variety of organizations, the general scheme of preliminary analysis is reduced to one single scenario, which provides for a series of activities aimed at assessing the commercial feasibility of the project, technical and financial, as well as economic and institutional. Risks are analyzed last. If the results of the analysis do not meet expectations, the direction is not closed. It is possible to make certain adjustments with further analysis, which will be carried out from the very beginning. Such a circular evaluation scheme can be repeated until a satisfactory calculation result is obtained.

Even if the indicators of the investment project turned out to be positive, they should be compared with the data of other projects of a similar type. There is a high probability that other areas will be more attractive, able to bring returns in a shorter time. In order to accurately determine the most profitable direction for investing, you need to do a huge amount of work. When it comes to investing in large commercial projects, such as factories or processing plants, the process of analyzing the situation at the facility can drag on for six months or more. The profit of the investor and the amount of risks will depend on the accuracy and objectivity of the calculations.

Project risks

Absolutely all economic investment projects are directly related to risks of a very different nature. The level of their influence on the activity of the object may increase due to radical changes in the state economy, due to the volatility of the market situation, due to the emergence of a large number of innovative areas for investment. The integration risk of the real investment process is based on project risks. They are related to actual actions. In the system of indicators for evaluating objects, the level of risks occupies the third most important position.

The real risks of projects imply the possibility of adverse financial circumstances in the form of loss of the expected investor income with the uncertainty of its implementation. Evaluation of the effectiveness of investment projects is impossible without considering the risks, which, in turn, have the characteristic features:

• Integrated character. The total risk indicator consists of a large number of coefficients calculated for all types of secondary risks.
• Objectivity of occurrence. Risks are inherent in each of the investment areas, regardless of the specification of the activity and scope.
• Diverse species structure. At each stage of the implementation of an investment project, various types of risks may arise, which should be assessed with a focus on different stages of the implementation of activities.
• Strong connection with commercial matters.
• Binding to the lifetime of a particular object.
• Cardinal changes in the indicator relative to single-plan projects.

It is also worth adding here that it is extremely problematic to assess the risks for a specific investment project due to the limited amount of information. Moreover, there are not enough indicators on the market that would help to make the most accurate calculations to evaluate the investment project. An example of an effective investment is always supported by additional costs for assessing the situation, for analytics, and for attracting audit companies. Not only the documentation of the object should ideally be, but the actual work of the project itself should correspond to the available data.

Investment project: an example

In practice, investment projects are documents that describe in detail certain business activities, starting from the planning stage and ending with obtaining certain results.

An example of an investment project is the construction of a residential complex. Investment will be made in construction. To enter the project, it is necessary to allocate funds for the purchase of a land plot, for building materials, wages for workers and other points. The profitability of the project will be generated by the sale of ready-to-use square meters and the sale of parking spaces.

Another example is an investment in a brewery. The purpose of the investment will be to modernize the production lines and to further sell the beer. To achieve optimal profitability indicators, it is worth re-equipping, expanding old and forming new sales markets. Important points are the expansion of the range and the implementation of a complex of marketing activities.

Any company and any enterprise can act as the center of an investment project. The main thing is to rationally evaluate the effectiveness of investments, you need to apply all the indicators described above to the priority area.

Investment project, concept and purpose

An investment project (IP) is a rationale for the economic feasibility, volume and timing of capital investments, including the necessary design and estimate documentation developed in accordance with the legislation of the Russian Federation and duly approved standards (norms and rules), as well as a description of practical action to implement investment(business plan).

An investment project is a plan or program of measures related to the implementation of capital investments and their subsequent reimbursement and receipt arrived.The term "investment project" can be understood in two senses:

as a set of documents containing the formulation of the goal of the forthcoming activity and the definition of a set of actions aimed at achieving it;

as this complex of actions (works, services, acquisitions, management operations and decisions) aimed at achieving the formulated goals.

A correctly drawn up investment project ultimately answers the question: is it worth investing at all? money in this case and whether it will bring income that will pay off all the costs of effort and money? It is very important to draw up an investment project on paper in accordance with certain requirements and carry out special calculations - this helps to see future problems in advance and understand whether they can be overcome and where you need to insure yourself in advance.

The purpose of the investment project is to help entrepreneurs and economists to solve four main tasks:

explore capacity and future prospects market sales;

estimate the costs that will be necessary for the manufacture and sale of the products needed by this market, and commensurate them with those prices for which you can sell your goods to determine the potential profitability of the planned business;

discover all possible "pitfalls" that lie in wait for a new business;

determine those signals and those indicators, on the basis of which it will be possible to regularly evaluate the activity of the enterprise.

Classification of investment projects When deciding on investment, it is advisable to determine where it is more profitable to invest capital: in production, securities, the purchase of goods for resale, real estate or currency. Therefore, when investing, it is recommended to take into account the following main points, for example, capital investments with long payback periods must be financed with long-term borrowed funds. Investments with a significant degree of risk are recommended to be financed from own funds (net profit and depreciation). It is necessary to choose such investments that provide the investor with the achievement of the maximum (marginal) profitability. The return on investment should always be above the inflation index. Methodological recommendations also involve the use of a number of important principles in the development, analysis and examination of investment projects, the main of which are the use of the principle of alternativeness; development and examination of the project in a number of mandatory sections or aspects, such as technical commercial, institutional, environmental, social, financial (micro level) and economic (macro level); the use of internationally accepted criteria for evaluating the effectiveness of projects based on determining the effect by comparing the upcoming integral results and costs with a focus on achieving the required rate of return on capital and other indicators, while bringing future costs and incomes to the conditions of their commensurability, taking into account the theory of the value of money in time; taking into account the uncertainty and risks associated with the implementation of the project, etc. There are various classifications of investment projects. Depending on the features underlying the classification, the following types of investment projects can be distinguished: I In relation to each other: · independent allowing simultaneous and separate implementation, and the characteristics of their implementation do not affect each other; Mutually exclusive i.e. not allowing simultaneous implementation. In practice, such projects often perform the same function. Of the totality of alternative projects, only one can be implemented; Complementary, the implementation of which can only occur jointly. II By implementation time (creation and operation):

short-term (up to 3 years);

medium-term (3-5 years);

long-term (over 5 years).

Short-term projects imply short deadlines for implementation. The cost of a short-term project may increase in the course of its implementation. The customer goes to increase the cost of the project in order to gain time to maintain priority in the competition in the sales market. Short-term (high-speed) projects, as a rule, are characteristic of enterprises with a rapidly updating product range, in restoration work, in the creation of pilot plants, etc. Long-term projects are usually those that implement capital-intensive investments (for example, investing in the construction and reconstruction of real estate). III By scale (most often the scale of the project is determined by the size of the investment): · small projects, the action of which is limited to the framework of one small firm implementing the project. Basically, they are plans to expand production and increase the range of products. They are distinguished by relatively short implementation times. Small projects usually do not require much elaboration of the feasibility study and related issues. At the same time, mistakes made during the formation of projects can seriously affect their effectiveness. Small projects also include the creation of social and cultural facilities. · medium projects- these are, most often, projects for the reconstruction and technical re-equipment of existing production facilities. They are implemented in stages, for individual industries, in strict accordance with pre-designed schedules for the receipt of all types of resources, including financial ones; · major projects- projects of large enterprises, which are based on a progressively “new idea” for the production of products necessary to meet demand in the domestic and foreign markets; · megaprojects- these are targeted investment programs containing many interconnected final projects. Such programs can be international, state and regional. Megaprojects have the following distinctive features - they have a high cost - from $1 billion; funds for the implementation of such projects usually exceed financial reserves, additional sources of financing are needed, for example, bank loans, export credits, mixed lending. Megaprojects require a large total amount of work in man-hours: 2 million man-hours for design, 15 million man-hours - for the construction of facilities; and the implementation period is 5-7 years or more. Megaprojects have an impact on the social and economic spheres of the region and even the country where it is being implemented. To classify a project as a small, medium or mega-project, the following indicators are used: • volume of capital investments; labor costs; the duration of the implementation; the complexity of the management system; attraction of foreign participants; · impact on the socio-economic environment of the region, etc. IV By main directions:

commercial projects whose main purpose is to make a profit;

social projects , focused, for example, on solving the problems of unemployment in the region, reducing the level of crime, etc.;

environmental projects , the basis of which is the improvement of the environment;

other

V Depending on the degree of influence of the results of the implementation of the investment project on internal or external markets for financial, material products and services, labor, as well as the environmental and social environment :

global projects , the implementation of which significantly affects the economic, social or environmental situation on Earth;

national economic projects , the implementation of which significantly affects the economic, social or environmental situation in the country, and when assessing them, one can limit oneself to taking into account only this impact;

large scale projects , the implementation of which significantly affects the economic, social or environmental situation in a particular country;

local projects , the implementation of which does not have a significant impact on the economic, social or environmental situation in certain regions and (or) cities, on the level and structure of prices in commodity markets.

VI A feature of the investment process is its association with uncertainty, the degree of which can vary significantly, therefore, depending on the magnitude of the risk, investment projects are divided as follows:

reliable projects , characterized by a high probability of obtaining guaranteed results (for example, projects carried out under the state order);

risky projects , which are characterized by a high degree of uncertainty of both costs and results (for example, projects related to the creation of new industries and technologies).

VII From the point of view of the project participants, the most significant is the consideration of the following participants: state enterprises; joint ventures; foreign investors. In practice, this classification is not exhaustive and allows further detailing. 1.3

1.2. Static methods for evaluating the effectiveness of investment projects. Simple, static criteria for the effectiveness of investment projects include the payback period and the simple rate of return. The payback period of an investment refers to the expected period of recovery of the initial investment from net receipts (cash receipts minus expenses). The economic meaning of the indicator is to determine the period for which the investor can return the invested capital. If the income stream is uneven, the calculation of the indicator involves determining the amount of cash receipts from the implementation of the project on an accrual basis, i.e. as a cumulative value (step-by-step summation of the annual amounts of cash receipts until the investment amount is reached). The advantage of the method lies in the ease of its calculation, sufficient simplicity for understanding and acceptability as a subjective criterion in assessing project risk (with a long payback period, we can talk about a significant degree of uncertainty in obtaining the expected investment results). The disadvantage is that it does not take into account the time value of money, ignores cash flows beyond the payback period, can be used only if the compared projects are of equal duration and the initial investment is one-time. A simple rate of return (accounting return on investment, investment efficiency ratio, estimated rate of return) is the ratio of the average income of an enterprise according to financial statements to the average investment. The average investment value is found by dividing the initial investment amount by 2, provided that at the end of the project implementation period, all costs will be written off. If residual or salvage value is allowed, its value is excluded. The application of the indicator is based on a comparison of its calculated level with the standard levels of profitability for the organization. Only those projects that increase the level of efficiency of production and economic activity previously achieved at the enterprise are subject to approval. The main advantage of the criterion lies in the ease of calculation and ease of use, and the disadvantage is that it does not take into account the time value of money, and accounting profit is used to determine it, while in the process of long-term investment, decisions made on the basis of monetary value are more reasonable. -stream analysis.

1.4. Dynamic methods for evaluating the effectiveness of investment projects. Criteria based on the technique of calculating the time value of money are called discounted criteria. In world practice, the following are most often used: 1. Net present value NPV (net present value) is a discounted indicator of the value of the project, defined as the sum of the discounted values ​​of income minus costs received in each year during the life of the project. PV is the current value of the project cash flows, I is the initial investment costs, CF (1,n) is the net cash flow in period t, n is the planned investment project implementation period, r is the project discount rate. To recognize the project as effective from the point of view of the investor, it is necessary that its NPV be positive; when comparing alternative projects, preference is given to a project with a large NPV value (provided that it is > 0). 2. Profitability index PI characterizes the return of the project on the funds invested in it. This is the ratio of the sum of cash flow elements from operating activities to the absolute value of the discounted sum of cash flow elements from investing activities. The criterion is very convenient when choosing one project from a number of alternative ones with approximately the same NPV values ​​(if two projects have equal NPV, but different volumes of required investments, then the one that provides greater investment efficiency is more profitable), or when completing an investment portfolio in order to maximize the total NPV values. H. The discounted payback period is equal to the duration of the shortest period after which the net present value becomes and continues to be non-negative. 4. Internal rate of return IRR - represents the interest rate r, which makes the present value of the project cash flows equal to the initial investment costs, i.e. r = IRR if NPV = 0. This is the discount rate at which the project breaks even. There are four ways to find IRR: - by trial and error; - using a simplified formula; - using a financial calculator; - applying the standard values ​​of the present value of the annuity at a constant value of the net cash flow. The practical application of this method is reduced to sequential iteration, with the help of which a discount factor is found that ensures the equality NPV=0. Focusing on the interest rates on loan capital existing at the time of analysis, two values ​​of the discount coefficient are selected< таким образом, чтобы в интервале от до функция NPV меняла свое значение с + на - или наоборот. Далее используют формулу: Точность вычислений обратна длине интервала, поэтому наилучшая апроксимация достигается в случае, когда длина интервала принимается минимальной (1%). Преимущества использования IRR, заключаются в следующем: прост в понимании менеджера, учитывает временную ценность денежных вложений, показывает рисковый край (предельные значения процентной ставки и срок окупаемости), для его расчета не требуется предварительно определять величину проектной дисконтной ставки. Недостатки связаны с неоднозначностью математического определения IRR в случае нетрадиционных денежных потоков и некорректной оценкой взаимоисключающих проектов с разными масштабами капиталовложений. Критерии IRR, NPV и PI являются фактически разными версиями одной и той же концепции, поэтому их результаты связаны друг с другом. Таким образом, можно ожидать выполнения следующих математических отношений для одного проекта: если NPV >0, then PI >1, IRR > r; if NPV< 0, то PI <1, IRR< r; если NPV = 0, то PI =1, IRR = r. Для того, чтобы проект мог быть признан эффективным, необходимо и достаточно выполнение одного из следующих условий: 1. NPV >= 0. 2. IRR >= r 3. PI >=1. 4. RVD< Т.