Skip to main content
Log in

Evaluating the efficiency of a project taking into consideration alternative investments

  • Published:
Mathematical Models and Computer Simulations Aims and scope

Abstract

The paper proposes an approach to studying the economic efficiency of investment in projects of different duration, based on the methods of mathematical modeling. The proposed approach defines real and nominal yield, the dynamics of lost profits and the real present value of the project with changing opportunity costs, and examines the impact of inflation on project performance indicators.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  1. Methodological Recommendations on Estimation of Effectiveness of Investment Projects (Ekonomika, Moscow, 2000) [in Russian].

  2. V. N. Livshits, On Methodology of Evaluation of Effectiveness of Russian Investment Projects (Inst. Ekon., Ross. Akad. Nauk, Moscow, 2009) [in Russian].

    Google Scholar 

  3. P. L. Vilenskii, V. N. Livshits, and S. A. Smolyak, Estimation of Effectiveness of Investment Projects. Theory and Practice (Delo, Moscow, 2002) [in Russian].

    Google Scholar 

  4. E. M. Chetyrkin, Financial Mathematics (Delo, Moscow, 2008) [in Russian].

    Google Scholar 

  5. R. Breili and S. Maiers, Principles of Corporate Finance (Olimp — Biznes, Moscow, 1997) [in Russian].

    Google Scholar 

  6. F. Modigliani and M. H. Miller, “Corporate income taxes and the cost of capital: a correction,” Am. Econ. Rev. 53 (1963).

  7. F. Modigliani and M. H. Miller, “Some estimates of the cost of capital to the electric utility industry: 1954–1957,” Am. Econ. Rev., 56.

  8. V. I. Mazhukin and O. N. Koroleva, Mathematical Modelling in Economics. Part 1. Quantitative Methods and Computational Algorithms (Flinta, Moscow, 2006) [in Russian].

    Google Scholar 

  9. V. I. Mazhukin and O. N. Koroleva, Mathematical Modelling in Economics. Part 3. Economical Applications (Flinta, Moscow, 2006) [in Russian].

    Google Scholar 

  10. Mathematical Modeling. Nonlinear Differential Equations of Mathematical Physics, Ed. by A.A. Samarskogo, S.P. Kurdyumova, and V.I. Mazhukina (Nauka, Moscow, 1987) [in Russian].

    Google Scholar 

  11. ConsultantPlus. http://www.consultant.ru

  12. I. Fisher, The Theory of Interest, (Macmillan, New York, 1930). http://www.econlib.org/library/YPDBooks/Fisher/fshToI.html

    MATH  Google Scholar 

  13. A. A. Samarskii and A. V. Gulin, Computational Methods (Mir, Moscow, 1989) [in Russian].

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to T. V. Koroleva.

Additional information

Original Russian Text © T.V. Koroleva, 2014, published in Matematicheskoe Modelirovanie, 2014, Vol. 26, No. 3, pp. 14–30.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Koroleva, T.V. Evaluating the efficiency of a project taking into consideration alternative investments. Math Models Comput Simul 6, 497–508 (2014). https://doi.org/10.1134/S2070048214050056

Download citation

  • Received:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1134/S2070048214050056

Keywords

Navigation