Methods of Venture Investment Projects Assessment for Enterprises of Agricultural Sector
Journal: Oblik i finansi (Vol.1, No. 71)Publication Date: 2016-03-30
Authors : Olha Karasyk; Maksym Petriuk;
Page : 110-116
Keywords : future value; discount rate; venture project; internal rate of return; profitability index of investment; agricultural sector; price of capital;
Abstract
The article is devoted to the basic methods of evaluation of investment projects and the definition of the assessment features of venture capital investment projects in the agricultural sector of Ukraine. Disclosed advantages and disadvantages of the main methods for assessing the feasibility of investment decisions. Identified problematic issues that arise when assessing the feasibility of venture capital investment projects by ‘venture capital method’. For their elimination it is proposed to calculate the target rate of return based on the country and industry risks by the model of capital assets of V. Sharpe. It is substantiated the expediency of using industry average multiples or multiples by regression that are calculated annually and presented on the site of A. Damodaran. Provided the algorithm of the use of feasibility evaluation of venture capital investment projects. Disclosed the features and offered the evaluation stages of venture project associated with investments in private agricultural companies that are at the initial stage of the life cycle and have a negative income.
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Last modified: 2016-04-21 18:06:51