DETERMINATION OF OPTIMAL FUNDING SOURCES FROM A SET OF ALTERNATIVES
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Abstract
The introduction provides a brief review of the literature on methods for assessing the effectiveness of investment projects, based on which the choice of optimal sources of financing is made. In the main part of the work, various scenarios for the implementation of an investment project are disclosed: sources of financing that are alternative to the baseline scenario are attracted. In the final part of the work, the considered scenarios are assessed and conclusions are drawn.
For each enterprise, improving the financial and economic efficiency of its activities is one of the priority tasks. These tasks include the need to increase the return on capital, the choice of funding sources that have a positive effect on economic efficiency. This paper examines the ways of choosing the optimal, from the point of view of the impact on economic efficiency, instruments for financing an investment project. A practical case of project financing with an assessment of the effectiveness of the implementation of an investment project is considered. To analyze the alternatives, a financial business model was developed, which allows you to quickly make changes, update performance indicators and make decisions about the required capital structure. It is concluded that the optimal capital structure with the highest NPV indicator and that when assessing the efficiency parameters, it is necessary to make an adjustment for the possible presence in the company's capital structure of funding sources that distort the comparability of the project in relation to projects without such sources (for example, budget grants).
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