Features of Schemes of Financing of Investment Projects at Maximisation of the Pure Discounted Income
Year: 2015
Type: article
Abstract: When alternative variants of investment projects are considered the preference is given to projects with greater net present value (NPV). Suggested simulation model with initially predetermined parameters gives possibility to find cash flows that generate maximum NPV. In this case the following issues are resolved: the issue of implementation priority of technology-independent manufacturing centers (lines); the selection of project external financing instruments, its terms, volumes and repayment period; the distribution of own and generated by project cash flows over periods of project life cycle. Necessity of additional limitations NPV (in particular, on loans and borrowing over periods of project life cycle) was identified during maximization of NPV that lead to its decrease.
Authors: A. M. Rytikov, S. A. Rytikov
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3013235866