Podgornaya N.A., Motchenko L.A., Chumachenko V.N. ANALYSIS OF METHODS OF EFFECTIVE SELECTION OF INVESTMENT PROJECTS FOR METALLURGICAL ENTERPRISES

DOI: https://doi.org/10.15688/jvolsu3.2018.3.7

Natalya A. Podgornaya

Candidate of Sciences (Engineering), Senior Lecturer, Department of Economic Cybernetics and Information Technologies, Donbass State Technical University, Prosp. Lenina, 16, 94204 Alchevsk, Luhansk People’s Republic, This email address is being protected from spambots. You need JavaScript enabled to view it. .

Larisa A. Motchenko

Assistant, Department of Economic Cybernetics and Information Technologies, Donbass State Technical University, Prosp. Lenina, 16, 94204 Alchevsk, Luhansk People’s Republic, This email address is being protected from spambots. You need JavaScript enabled to view it. .

Viktoriya N. Chumachenko

Master Student, Department of Economics and Management, Donbass State Technical University, Prosp. Lenina, 16, 94204 Alchevsk, Luhansk People’s Republic, This email address is being protected from spambots. You need JavaScript enabled to view it. .

Abstract. This paper deals with the issues of efficient selection of investment projects of industrial enterprises. We have conducted an analysis of the features of the investment activity at the metallurgical enterprises and identified the major problems preventing effective investment, namely the inertness of attachments and large volumes of financing for investment projects which result in the need to involve multiple sources of investment resources for the implementation of one project. The social significance of investing in metallurgical industries and dependency of such important industries as construction, defense-industrial and fuel-energy complexes, on metallurgy and the State’s interest in modernizing production in its own territory determine the relevance of the chosen topic. The paper reveals a low level of attractiveness of the metallurgical enterprises for investors and explains the necessity for applying economic and mathematical modeling for optimization of investment projects with different volumes of funding. Within the framework of resolving these problems, the paper reveals and partly solves the challenge of effective selection of investment projects where we propose the use of net present value and benefitcost ratio as selection criteria. As a result, it has been established that the use of methods of economic-mathematical modelling, in this case the application of the optimization model, usually used to select investment projects with limited resources, in comparison with the method of ranking increases the accuracy of calculations and, therefore, allows obtaining a more efficient solution to the task of investment project selection. A comparative analysis of these methods has been carried out on the example of solving the applied problem of selecting investment projects by branch No. 12 of Vneshtorgservis Ltd.

Key words: metallurgical enterprises, investment, choice of investment projects, rational choice method, ranking method, efficiency evaluation, optimization model.

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