Methods of assessment of financial efficiency in construction projects

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Abstract:

The purpose of this article is to determine the most accurate methods of assessment of economic effectiveness of investment construction projects in crisis. Currently, in the Russian Federation, we observe a deterioration of the economic situation: the fall of the national currency and the solvency of the population, raising the key rate and the tightening of monetary policy by the Central Bank of the Russian Federation, rising inflation, economic sanctions against Russia, the volatility of the currency. In this regard, the demand for real estate falls, and the construction itself is expensive. Therefore, when a final selection of the developer of the project, the role properly evaluate the effectiveness of investments in a particular project. In other words, you need to choose a project that will bring maximum profit from the investments. This problem can be solved only by proper analysis of the effectiveness of future construction projects. Therefore, the aim of this article is to analyze the advantages and disadvantages of the main methods of valuation of efficiency of investment projects (NPV, IRR, PP, DPI, DPP). The result of the study came to the conclusions about the feasibility of using specific methods in the evaluation of investment construction projects.