Open AccessInnovations in engineering: analysis of the increase effect in net present value
Author(s) -
Yu. V. Kirillov,
Evgeniya Dragunova,
А. В. Кравченко,
Анна Дорофеева
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/843/1/012018
Subject(s) - net present value , profitability index , loan , investment (military) , rate of return , capital (architecture) , economics , value (mathematics) , present value , duration (music) , internal rate of return , actuarial science , econometrics , finance , microeconomics , production (economics) , mathematics , statistics , art , literature , archaeology , politics , political science , law , history
The article discusses the construction of mathematical models for assessing economic conditions under which a positive effect of using loan capital in the implementation of innovative and investment projects in engineering is possible, leading to an increase in net present value (NPV). Based on the constructed models, the authors obtained economic and mathematical relations (linking the parameters of innovation and investment projects: investor profitability standard, loan capital rate, time it was entered into the financial and temporal scheme of the project, the time it began to pay off financial obligations and its duration), which determine the increase effect of NPV due to the corresponding structure of investment capital. In the form of functions of the project parameters, analytical expressions are obtained to determine the critical value of the loan rate, the time of its input, as well as the rate of return on the investor and at which the effect of an increase in the net present value of the project becomes possible. The mathematical relations and the economic conclusions drawn on their basis are backed by practical results, given in a graphic form.