Management of the value of an investment project based on its economic and mathematical model

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Abstract

currently, the value of an investment project is one of the main metrics taken into account when making a decision to invest in a project. The reason is that this metric is included in the cash flow when implementing the model of investor entry and exit into/from the project. The relevance of this study is that to date, a generally accepted method for determining the project value at any point in the future has not yet been formulated, and practical work on attracting investment into a project regularly sets such tasks. The study clarified the concept of value, analyzed the currently available approaches to business valuation, determined their advantages and limitations in application. A method for calculating the project value at any date in the future based on an economic and mathematical model of the project is also proposed. This method allows you to calculate the investor's cash flow with a high degree of reliability using a mixed model (entry/exit and dividend), which can be a reliable basis for making investment decisions. The practical significance of this study lies in the development of a methodology for calculating and managing costs, implemented in a software product that can significantly facilitate the process of finding an optimal investment strategy.

About the authors

D. S Bezruchko

Higher School of Engineering and Economics; Peter the Great St. Petersburg Polytechnic University

ORCID iD: 0000-0002-6891-5261

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