Theoretical Foundations and Analysis of the Practice of Decision-Making on the Formation of a Project Financing System
T R Gambarov, R R Bashirzade, U S-E Khakhanaev, A V Pahomova
T R Gambarov
Available Online 17 March 2020.
- https://doi.org/10.2991/aebmr.k.200312.185How to use a DOI?
- The article reviews the theoretical foundations and analyzes the practice of the project approach and its financial support in the context of structuring the management decision-making process based on the basic theoretical and methodological principles of management and finance. Attention is focused on the methods of selection and evaluation of projects for non-production and production areas, in particular, such as simple accounting (accounting) rate of return (ARR); payback period (PP); net present (current) value (value); internal rate of return (IRR). It has been determined that the initial premise for structuring the decision-making process is a specific investment situation, consisting in management-oriented decision-making stages of the process of forming and evaluating investment projects. The author’s classification of investment projects has been formed as a basis for setting goals and evaluating projects, taking into account the results obtained in the implementation of measures to achieve them, in particular, profits. Attention is paid to the specifics of projects in the non-production sphere, which bring indirect income by gaining stability. Practical recommendations are proposed for the step-by-step calculation of discounted flows, taking into account the discount factor. The use of recommendations allows you to make informed management decisions on the financing of projects both in terms of the amount of investments and in terms of investment time.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - T R Gambarov AU - R R Bashirzade AU - U S-E Khakhanaev AU - A V Pahomova PY - 2020 DA - 2020/03/17 TI - Theoretical Foundations and Analysis of the Practice of Decision-Making on the Formation of a Project Financing System BT - Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2020) PB - Atlantis Press SP - 1346 EP - 1357 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200312.185 DO - https://doi.org/10.2991/aebmr.k.200312.185 ID - Gambarov2020 ER -