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Economic Assessment of Investment for the Production of Construction Products, Using the Mathematical Model

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Software Engineering Perspectives in Intelligent Systems (CoMeSySo 2020)

Abstract

The sphere of building materials production is one of the most “problematic” as it has a very high share of import dependence. The purpose of this article is to create a mathematical model which may make it possible to evaluate capital investments in the production of certain types of products for construction. Using the obtained model, it is possible to evaluate for investors the most attractive directions for the production of building materials, and those that have negative returns can be considered as potential investors, but require a radical change in the product itself or the production process. Using specific types of investments as an example, the article reveals the investment sense of the “Profitability – Risk” model, based on the theory of portfolio analysis. The synthesized model is used specifically for this industry. The investment attractiveness of certain types of products in the field of production of building materials is assessed. Based on the results of the research, a list of the most profitable sectors for investing money is formed. In general, the sphere of production of building materials is such that it is impossible to abandon the production of economically inefficient at all, therefore this model allows us to determine the areas that require a review of the production and marketing strategy.

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Correspondence to E. Yu. Gorbachevskaya .

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Gercekovich, D.A., Gorbachevskaya, E.Y., Shilnikova, I.S., Arkhipkin, O.V., Apalchuk, Y.A. (2020). Economic Assessment of Investment for the Production of Construction Products, Using the Mathematical Model. In: Silhavy, R., Silhavy, P., Prokopova, Z. (eds) Software Engineering Perspectives in Intelligent Systems. CoMeSySo 2020. Advances in Intelligent Systems and Computing, vol 1295. Springer, Cham. https://doi.org/10.1007/978-3-030-63319-6_7

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