APPROACHES TO THE EFFICIENCY EVALUATION FOR THE COMPLEX OF INTERRELATED INVESTMENT PROJECTS

Abstract

In the conditions of modern scientific and technological development, the main investment decisions are made at the microeconomic project level, and the mutual influence of the projects on each other, including within the same firm, is significantly increased. There is a need to evaluate a set of investment projects that generate synergistic effects. This article proposes methods for such an assessment, including the creation of a financial model of the firm based on three interrelated forms of financial reporting with a detailed presentation of the most important financial indicators of the firm, identifying the main combinations of projects, building options for the company model for each combination, taking into account all the relationships and synergies, comparison them among themselves and with a firm model without projects, an evaluation of the efficiency of each combination of projects based on discounted free cash flows, the determination of the expected synergistic effects for each set of projects, the selection of the most significant ones and their integration into the model. As a result, a combination of projects is considered as the most effective, which provides the maximum increase in the value of the firm. Suggested methods and models are approved on the example of a firm considering the implementation of two interrelated investment projects. It is shown how individual synergetic effects generated by projects directly or indirectly affect most of the parameters of the simulation model. The proposed methodology allows solving the problem of assessment for synergetic effects and used as a useful decision-making tool for firms implementing a set of interrelated investment projects, especially in the case of significant impact of projects on the activities of the company itself.