Economic Evaluation of the Corporate Projects’ Efficiency

Abstract

The modern system of indicators for assessing the economic efficiency of corporate projects does not show the adequacy of the forecasted efficiency level of the project. The purpose of the study is to justify the need for introducing new indicators that can provide a full assessment of project effectiveness. The basis of the study is a systematic approach and its scientific methods, according to which the financial system is considered as a subsystem of the general economic system of the corporation, and its financial results are an integral element of the integral indicator of project efficiency. The results of the study show that for a full assessment of the effectiveness of the project, it is necessary to use new indicators (financial and economic profitability of the project, financial potential of the project), which allow us to evaluate the project effectiveness taking into account the economic efficiency of the designed financial system. The scientific novelty is represented by the following: the system of indicators for evaluating projects has been expanded; the economic content and the purpose of the indicators of financial potential and economic profitability are disclosed; the technique of analyzing and evaluating the project effectiveness and financial stability is provided; new factors and indicators of project performance management are identified. A project can be considered effective at the proper level if its level is not lower than the level of financial and economic profitability.