Topic №11: Evaluation of financial and economic efficiency of investment projects

ARR =	EBIT(1-IT)	=	200(1-0,24)	=
0.304
	(Cb - Ce)/2		(1000-0)/2

The investment process accompanied by a cash flow. Cash flow of investment project - cash receipts and payments for the implementation of the investment project, determined for the entire billing period.

• The investment process accompanied by a cash flow. Cash flow of investment project - cash receipts and payments for the implementation of the investment project, determined for the entire billing period.
• Receipt of funds on the account of an organization called the inflow or positive cash flow. Payments of cash called outflows or negative flow.
• The difference between the inflow and outflow of funds over a period forms the balance. The balance seen as a positive result from the project, and it is called a pure flow or net cash flow.

From investment activities: Sale of assets during and after the project, the revenue from the reduction in working capital
From operational activities: sales revenue, as well as other and non-operating income and, including the revenue of funds invested in additional funds
From financing activities: investments of its own (equity) capital and borrowed funds: grants and subsidies, loan funds, including the issue of enterprise their own debt securities
Cash Flow
Inflow
Outflow
From investment activities: capital investments, the liquidation costs at the end of the project, the cost of working capital and funds invested in additional funds
From operating activity: production costs, tax
From financing activities: the cost of return of main amount of the loan and interest rates for it and issued debt securities and if necessary - for the payment of dividends on the shares of companies