As part of the development of market relations, investment is an important basis for financial activity and a source of economic development. It is very useful to be able to calculate the effectiveness of investments, expanding their scale over time.
Assessing the effectiveness of the investment project, it is necessary to go through several stages:
1) to develop an investment proposal and a declaration of intent;
2) to formulate a feasibility study for the project;
3) carry out economic monitoring;
4) to calculate the economic efficiency of the project.
It is necessary to collect the necessary information, the amount of which will depend on the stage at which the project is located, and on its complexity. It includes the goal, information about the organization that implements the project (legal form, time of existence on the market, state of finances, etc.), type of product, risk assessment. It should also be noted that this information is collected before calculating the effectiveness.
It is important to evaluate the following types of project performance:
1) Productivity of the program as a whole (this most often happens on the part of a commercial or public position, and both of these types should be considered from the point of view of one respondent who implements this project using his own funds).
The calculation of the effectiveness of these parties has the following objectives:
- determine the potential attractiveness of the program for potential partners;
- find sources of financing.
2) Effectiveness of participation in the investment project. Anyone can be involved in the implementation of the program: the enterprise itself, which creates the project, and the banks that credit it, and the company that provides equipment for leasing, etc. Also, the project can be affected by higher structures, such as the region, industry, which can significantly affect the implementation of the investment project.
It is necessary to determine how effective the participation of each respondent in the program is.
This type of project performance pursues the following objectives:
- check the feasibility of the investment program;
- evaluate the interest of all participants in the implementation of the project.
The calculation of the effectiveness of an investment project is a category that reflects the conformity or non-compliance of the program with the interests and goals of its respondents.
Assessing commercial effectiveness, it should be noted that the effect is the flow of real money, defined as the total number of finances from operating and investment activities for each year of the project.
Measuring the effectiveness of advertising is to determine the share of uncertainty in marketing decisions. Advertising itself is informing a potential consumer about a product. The calculation of the effectiveness of advertising is carried out using the following indicators:
1) the degree to which product information is introduced into consumer consciousness;
2) the number of purchases per unit of time, etc.
When deciding on the effectiveness of a project, it should be determined how much it meets the requirements and goals of the developers of the investment program. Then we can talk about its implementation.
