Управленческий учет на предприятии

There are researches which show that the open companies use NPV and IRR indicators more often than the closed firms [Graham, Harvey, 2001; Graham, Harvey, 2002; Hermes, Smid and Yao, 2007]. Thus seeming an organizational and legal form of the company obvious interdependence and its size by many researchers it is rejected as the regression analysis shows that these characteristics don't correlate with each other [Graham, Harvey, 2002].

Generally dependence of use by finance directors of indicators of efficiency of investment projects from an organizational and legal form of the company connect with that it is easier to make capital estimation of cost for firms quoted in the market. It allows finance directors of data of the companies to use the discounted indicators more effectively and correctly. At the same time in the private (closed) firms the discounted indicators (for example, NPV) aren't used as many of these companies are fast-growing and it is rather difficult to define their investment opportunities through criterion of NPV: expected cash flows from their investments most likely won't be to materialize for years.

Researches in which the attention to education of the finance director is paid, are generally concentrated on hypothesis check that the is higher an education level of the financial manager, the it is easier to it to use more reliable discounted indicators [Graham, Harvey, 2001; Laitinen, 2001; Graham, Harvey, 2002; Hermes, Smid and Yao, 2007]. The made hypothesis is confirmed by various techniques of the analysis: really, with growth of an education level of the finance director, the discounted indicators (NPV and IRR) are used more often.

As for dependence of a choice of the finance director on level of export of the company in a total amount of sales, the analysis of some foreign researches shows that finance directors of the companies having high level of export, prefer to use the discounted indicators, such as NPV and IRR [Hermes, Smid and Yao, 2007]. The share of export of firm in the total amount of sales often correlates with sizes of firm and an education level of her finance director: the majority of the companies exporting the production - is the major companies headed by the management with a high education level.

Some researches revealed that young finance directors of the companies more use the discounted indicators of efficiency of investment projects, such as NPV and IRR [Graham, Harvey, 2001]. However later more modern researches added this assumption: the finance director, the higher him ability to perception of rather newer techniques using discounting [by Hermes, Smid and Yao, 2007] is younger. The analysis shows that the choice the finance director of these or those indicators of efficiency of investment projects is influenced by the company size, instead of age of the finance director more.

By consideration of influence of the size of the company on a choice the finance director of indicators of efficiency of investment projects we touched also upon a subject of the size of the investment budget. As a whole all researchers meet that there is a positive dependence between the size of the investment budget and use of the discounted indicators, such as NPV and IRR. The analysis shows that most often the companies with the small investment budget use an index of profitability (return), and also criterion of the period of payback of the project. As it was already mentioned, often the size of the investment budget of the company depends on the firm size as a whole.

The choice the finance director of these or those indicators is influenced also by a financial leverage of the company. The following dependence is thus observed: firms with a high share of the loan capital use NPV and IRR, than firms with a low share of the loan capital (in many researches by the companies firms at which the indicator of a debt exceeds 30% reckon with a high share of the loan capital) much more often. It is known that one of benefits of use of the loan capital is the tax board, and its account occurs at calculation of such indicators, as NPV and IRR. As show many researches, the tax board is especially important for the large companies, firms with a big share of the loan capital, with the low risk level, the open companies, i.e. for firms which more powerful incentives of use of the loan capital [Graham, Harvey, 2002] tend to high limit rates of a profit tax and, thus.

How the country level of development as a whole influences a choice finance directors of the companies of indicators of efficiency of investment projects? Large research on this subject was conducted by comparison of the Netherlands and China [Hermes, Smid and Yao, 2007]. Main objective of research was question studying, how economic development of the country has impact on by what criteria the firms are guided at adoption of the investment decision. For determination of the importance so-called «country effect» (country effect) was used the dispersive analysis, and also pair and multiple regression analyses.

During work authors concentrated on the analysis of level of economic development as factor of use of this or that method of formation of the investment budget. The logic of researchers is clear: in more developed countries the financial markets have much more difficult structure and a high level of development of the human capital and technologies. Therefore, level of economic development of the country and complexity of the techniques applied by financial managers in this country, are in positive dependence. The central hypothesis of research is as follows: financial managers in more developed countries use the discounted indicators of efficiency of investment projects considerably more often than their colleagues in less developed countries.

Data for empirical research were collected by carrying out questioning. Questionnaires in which respondents had to specify the firms given concerning characteristics and financial managers were dispatched to 250 Dutch and 300 Chinese firms, and also answer three main questions:

1. What indicators of efficiency of investment projects are applied by the finance director of firm most often?

2. What methods of estimation of cost of the capital are most often used in the company?

3. What methods of estimation of cost of own capital are most often used in the company?

Answers were received from 17% of the Dutch firms and 15% of the Chinese companies. Results of poll showed that the Dutch firms most often apply NPV to an assessment of investment projects (89% of respondents use it (almost) always). IRR and PBR are actively used approximately by identical number of firms, and ARR is much less popular. Rather Chinese firms results of poll testify that the companies most often use IRR and PBR as the main indicators of efficiency of investment projects. The criterion of NPV is applied much less often, and ARR, as well as in the Netherlands, practically isn't used.

The regression analysis carried out by researchers allows to draw a conclusion that the choice finance directors of an indicator of NPV as criterion of an assessment of efficiency of investment projects depends on «country effect»: the Chinese firms apply this criterion considerably less than the Dutch. Thus dependence remained and after input in consideration of control variables. Thus, researches proved that use of criterion of NPV depends on level of economic development of the country.

The choice of an indicator of IRR as a method of an assessment of efficiency of investment projects not so strongly depends on «country effect»: coefficient of this factor in pair model we mean only at the level of 10%, and at introduction of control variables becomes insignificant. Between the countries in application of similar criterion authors explain lack of distinctions to that the Dutch firms even more often start using the NPV method which is more correct, than IRR, and the criterion of IRR yet didn't gain due distribution in the Chinese firms. Use of criterion of ARR is more peculiar to the Chinese firms, than Dutch. It confirms both pair, and multiple regression models.

Thus, researchers came to the following conclusion: level of economic development of the country influences a choice finance directors of the companies of indicators of efficiency of investment projects. In the developed countries the discounted indicators of NPV and IRR (thus IRR use is reduced recently) more often are applied. In the developing - finance directors prefer such criterion, as PBP; IRR indicator already gained some popularity, but still widely isn't used.

1. Purposes and stages of estimating of capital investments. Investment activity is to some extent inherent in any enterprise. Adoption of the investment decision is impossible without the following factors: type of an investment, cost of the investment project, plurality of available projects, limitation of the financial resources available to investment, the risk connected with adoption of this or that decision, etc. The reasons causing need of investments, can be various, however as a whole they can be subdivided into three look: updating of available material base, accumulation of volumes of a production activity, development of new kinds of activity. Degree of responsibility for adoption of the investment project within this or that direction is various. So, if it is a question of replacement of available capacities, the decision can be made rather without serious consequences as the enterprise management clearly imagines, in what volume and with what characteristics new fixed assets are necessary. The task becomes complicated if it is a question of the investments connected with expansion of primary activity as in this case it is necessary to consider a number of new factors: possibility of change of position of firm on a commodity market, availability of additional volumes of material, labor and financial resources, possibility of development of the new markets, etc. It is obvious that the question of the size of estimated investments is important. So, the level of responsibility, connected with adoption of projects worth 1 million and 100 000 000, is various. Therefore it has to be various and depth of analytical study of the economic party of the project which precedes decision-making. Besides, in many firms there is ordinary a practice of differentiation of the right of decision-making of investment character, i.e. the maximum size of investments within which this or that head can make independent decisions is limited.

Quite often decisions have to be made in conditions when there is a number of alternative or mutually independent projects. In this case it is necessary to make a choice of one or several projects, based on any criteria. It is obvious that such criteria can be a little, and probability of that any one project will be more preferable than others by all criteria, as a rule, much less unit. In the conditions of market economy of opportunities for investment there is a lot of. At the same time any enterprise has the limited free financial resources available to investment. Therefore there is a problem of optimization of an investment portfolio. Very существен risk factor. Investment activity is always carried out in the conditions of the uncertainty which degree can vary considerably. So, at the time of acquisition of new fixed assets never it is impossible to predict economic effect of this operation precisely. Therefore quite often decisions are made on an intuitive basis. Decision-making of investment character, as well as any other type of administrative activity, is based on use of the various formalized and unformalized methods. Degree of their combination is defined by different circumstances, including that from them as far as the manager is familiar with the available device applicable in this or that concrete case. In domestic and foreign practice a number of the formalized methods calculations by means of which can form a basis for decision-making in the field of investment policy is known. Any universal method suitable for all cases of life, doesn't exist. Possibly, management nevertheless more is art, than science. Nevertheless, having some estimates received by formalized methods even if to a certain extent conditional, it is easier to accept final решения.1. Methods of an assessment of efficiency of investments. At the heart of process of adoption of administrative solutions of investment character the assessment and comparison of volume of estimated investments and future monetary receipts lie. As compared indicators belong to various timepoints, a key problem here is the problem of their comparability. It is possible to treat her differently depending on existing objective and subjective conditions: rate of inflation, the size of investments and generated receipts, the horizon of forecasting, skill level of the analyst, etc. The methods used in the analysis of investment activity, it is possible to subdivide into two groups: a) based on the discounted estimates; b) based on registration estimates. Let's consider the key ideas underlying these methods.

Methods of an assessment of efficiency of investment project.

The main criteria of an assessment of investment projects are profitability, profitability and payback. In foreign practice for an assessment of efficiency of investiktsionny projects five main methods are used:

1) the methods based on discounting, allowing to calculate the following indicators:

- the net current value (the pure given effect) (NPV); - index of profitability of investments (PI);

- internal standard of profitability of investments (IRR);

2) the methods based on registration estimates, allowing to calculate the following indicators:

- project (RR) payback period;

- effectiveness ratio of investments (ARR).

In the Russian practice for an assessment of efficiency of investiktsionny projects the following methods are used.

1. The method of calculation of net current value allows net income from the project which represents a difference between the sum of the discounted cash flows generated by the project, and total amount of investments.

Net current value = the specified cost of cash flows from the project - total investment, (15.1)

Application of this method allows to receive the most exact results in case fluctuations of a discount rate during implementation of the project are insignificant. The similar method in the western practice is called metokdy calculation of net current value (or the net specified value) (Net present value - NPV) which is understood as a difference between total amount of the discounted streams of budukshchy receipts of the money, generated to data prokekty, and total amount of investments (invest cost - 1C).

2. The method of calculation of an index of profitability allows to define the income on a unit of cost. It is considered that results of application of this method specify results of application of a method of chiskty current cost. Profitability indicator представ¬ляет itself the relation of the current cost of the cash flows generated by the project, to total amount of initial invekstition. The similar method in the western practice is called metokdy calculation of an index of profitability of investments (profitability index - PI).

The formula of calculation of an index of profitability of investments has the following appearance: 3 . The method of calculation of internal standard of profitability of the project (or marginal efficiency of the capital) allows to define the greatest possible level of expenses for the capital, associated with the project. The internal standard of profitability represents a rate of profitability at which the net specified value of cash flows from the project is equal to zero. If the cost of sources of financing exceeds internal standard of profitability, the project will be unprofitable and vice versa if the internal standard of profitability exceeds the cost of isktochnik of financing, the project will be profitable. In the Russian practice of the financial analysis the internal standard of profitability pays off as the relation of net current value to the current cost of initial investments.

Internal standard of profitability = (net current value / current cost of initial investments) Ч 100%, (15.2)

The similar method in the western practice is called metokdy calculation of standard of profitability of investments (internal rate of return, internal rate of return - IRR) and is used in two purposes:

1) definition of admissible level of percentage expenses in case of project financing at the expense of the raised funds;

2) confirmation of an assessment of the projects received as a result of use of methods of calculation of the net current value (NPV) and an index of profitability of investments (PI).

The standard of profitability of investments (IRR) is understood as such value of profitability (r) at which the pure current stoikmost (NPV) being function from (r), is equal to zero.From a formula follows that for receiving an indicator of IRR previously to calculate an indicator of net current value at different values of an interest rate.

4. The modified method of calculation of internal norm of a renktabelnost allows to receive more exact results. At calculation of net current value cash flows on a rate equal to the average cost of the avansikrovanny capital. Internal standard of profitability = (the net current value calculated on the basis of a rate of discounting, equal average cost of the advanced capital) * 100% / (sum of initial investments).

5. Method of calculation of a payback period of investments. The payback period of investments is understood as term, after которо¬го total amount of receipt from the project becomes equal total amount of invested funds. The timepoint in which total amount of receipts becomes to equal total amount of pervonakchalny investments, in financial management is called as a profitability point. Receipts of money after passing of a point of profitability aren't considered. Projects with equal payback periods admit equivalent. This method also allows to define level of a likvidknost of the project and investment risk. The there are less okukpayemost terms, the it is more liquidity and vice versa, the more the payback period, the is less liquidity. The liquidity is higher, the it is less risk and vice versa, the liquidity, the вы¬ше the risk connected with the project there is less.

In the Russian practice depending on a way an opredelekniya of size of the cash flows generated by the project, and initial investments three options of calculations are used:

1) the method based on registration estimates;

2) discount method;

3) discount method with use of average size of a cash flow.

In the first case term after which the sum of the cash flows generated by the project, becomes the ravkny sum of invested funds is defined. Not discounted cash flows, which with not discounted cost of initial investiktion are thus summarized.

In the second case term after which the sum of the discounted cash flows, generated prokekty, becomes the equal discounted cost of pervonachalkny investments is defined. This way allows to consider a reinvestment vozmozhknost (repeated investment) income from the project.

In the third case a payback period of investments the relation of the specified cost of initial invekstition to the average size of the discounted monetary stream in this period. The similar method in the western practice is called metokdy a payback period of investments (payback period - as RR) and to define term during which the sum of not discounted predicted receipts of money becomes equal total amount of the expenses connected with this project.

The payback period of investments pays off:

1) in case of uniform distribution of receipts from by years - division of cumulative expenses into the size of the godokvy income;

2) in case of uneven distribution of receipts from the project by years - direct calculation of number of years, during koktory the sum of the income will exceed the sum of expenses.

6. Method of simple (accounting) rate of return for an assessment of efficiency of projects with short payback periods. The simple rate of return is understood as the relation of the net profit got as a result of a realizaktion of the investment project, to invested funds (invekstition). In the western practice the similar method is called as a method of calculation of effectiveness ratio of investments (accounting rate of return - ARR).

The calculation formula idle time of accounting rate of return has the following appearance:

, (15.3)

where ARR - the coefficient of efficiency of investments;

PN - the average annual return on cash invested in the project;

IC - the amount of money invested in this project (total investment);

RV - salvage value (residual) value of the assets, that is, the value of assets at the end of their useful of use.

15.2 Adoption of long -term investment decision

Investment projects are born out of the needs of the enterprise. Condition for the viability of investment projects is their compliance with the investment policy and the strategic objectives of the company, finding the basic expression to improve the efficiency of its business. Evaluation of investment projects - one of the main elements of investment analysis, is the main tool of the correct choice of several investment projects, the most effective, improving the investment programs and to minimize the risks. Methods for evaluation of investment projects, not all cases can be unified as investment projects are a major difference on the scale of costs, their useful life, as well as useful results.

At the same time, a larger-scale investment projects (new construction, reconstruction, and development of new types of products, etc.) that require high investment costs, is the need to consider a number of factors and, as a result, a more complex calculations, as well as refine methods of performance evaluation. The greater the investment project and the more significant changes it causes in the results of business, the better should be the calculation of cash flows and the effectiveness of methods for evaluating the investment project. The fact that the cash flows due to the implementation of investment projects, takes place over a number of years, complicates the assessment of their effectiveness. Given the fact that the implementation of investment projects over a long period of time has an impact on the economic potential and results of operations, the error in the evaluation of their effectiveness is fraught with significant financial risks and losses. Economic science knows a few basic reasons for the discrepancy between the design and actual efficiency of investment projects.

To the methods which aren't including discounting, the following belongs:

a) the method based on calculation of payback periods of investments (payback period of investments);

b) the method based on determination of rate of return on the capital (rate of return on the capital);

c) the method based on calculation of a difference between the sum of the income and investment expenses (one-time costs) for all term of use of the investment project which is known under the name Cash-flow or the saved-up balance of a cash flow;

d) method of comparative efficiency of the given expenses for production;

e) method of a choice of options of capital investments on the basis of comparison of weight of profit (a method of comparison of profit).

Methods of an assessment of the efficiency, not including discounting, sometimes call statistical methods of an assessment of efficiency of investments. These methods are guided by design, planned and actual data about expenses and the results, caused by implementation of investment projects. When using these methods in some cases resort to such statistical method, as calculation of average annual data on expenses and results (income) for all term of use of the investment project. This reception is used in those situations when expenses and results are unevenly distributed by years of application of the investment project.

As a result of such methodical reception the time aspect of cost of money, the factors connected with inflation and risk isn't fully considered. At the same time with it process of carrying out the comparative analysis of design and actual data by years of use of the investment project becomes complicated. Therefore statistical methods of an assessment (the methods which aren't including discounting) it is the most rational to apply when expenses and results are evenly distributed by years of implementation of investment projects and term of their payback covers a small period - till five years. However, thanks to the simplicity, general availability for understanding the majority of specialists of firms, the high speed of calculation of efficiency of investment projects and availability to obtaining necessary data, these methods gained the widest circulation in practice. Their main shortcomings - coverage of the short period of time, ignoring of temporary aspect of cost of money and uneven distribution of cash flows during all term of functioning of investment projects. All set of statistical methods of an assessment of efficiency of investments can be divided into two groups conditionally:

1. methods of absolute efficiency of investments;

2. methods of comparative efficiency of options of capital investments.

The method based on calculation of payback periods of investments, and the method based on determination of rate of return on the capital belong to the first group.

The second group - to methods of a comparative assessment of efficiency of investments - treat:

1. method of the saved-up balance of a cash flow (the saved-up effect) for the settlement period;

2. method of comparative efficiency - a method of the given expenses;

3. method of comparison of profit.

The theory of absolute efficiency of capital investments proceeds from the precondition that such investment project which provides implementation of the standards of efficiency of use of capital investments established by the investor is subject to realization or introduction. Standard term of useful use of the investment project, or receiving the set rate of return belongs to such standards on the capital. The project is subject to introduction if expected value of the above-named indicators is equal or big their standard values. The theory of comparative efficiency of capital investments proceeds from the precondition that such investment project from several (not less than two) which provides or the minimum sum of the given expenses is subject to introduction (realization), or at most arrived, or a maximum of the saved-up effect for the settlement period of its use.

15.3 The discounted methods of estimates of investment

Discounting - a method of an assessment of investment projects by expression of future cash flows connected with implementation of projects, through their cost at the moment time Methods of an assessment of efficiency of the investments, based on discounting, are applied in cases of the large-scale investment projects which realization demands considerable time.

The discounted methods of estimates of investments.

Methods of an assessment of efficiency of the investments, based on discounting:

* method of the net specified value (a method of the net discounted value, a method of net current value);

* method of internal rate of return;

* the discounted payback period of investments;

* profitability index;

* annuity method.

The method of an assessment of efficiency of the investment project on the basis of the net specified value allows to make the administrative decision on expediency of implementation of the project proceeding from comparison of the sum of future discounted income with the expenses necessary for implementation of the project (capital investments).

Profitability index - this relation of the provided monetary income to given for the beginning of implementation of the project to investment expenses. If the profitability index more than 1, the project is approved. At a profitability index less than 1 project rejects.

The internal rate of return represents that settlement rate of percent (a discounting rate) at which the sum of the discounted income for the entire period of implementation of the investment project becomes to the equal sum of initial expenses (investments). This norm it is possible to treat percent under which the firm can take the credit for project financing by means of the loan capital as the maximum rate.

Calculation of annuity is most often reduced to calculation of total amount of expenses for acquisition on a modern total cost of payment which then are evenly distributed on all duration of the investment project. Fundamental idea of discounting is the provision on change of cost of money in time. In the economic theory this situation keeps within a framework of the phenomenon which has received the name «temporary preference». The last means refusal of the current consumption of the benefits in favor of future consumption. It is thus supposed that the income from the «postponed» (investment) capital in the future will be more, or at least equal, the current cost of the capital and possible from alternative options of its use.

Temporary preferences find the quantitative expression in discounting coefficient which, inherently, there is no other than the price of time determined in the market where the present benefits exchange on the future. The coefficient of discounting is expressed in the form of a formula:

According to the neoclassical theory, in the conditions of the perfect financial market as norm of discount the rate equal to cost of the loan or cost of the capital has to be accepted. It means that the enterprise has no strategy of independent behavior and is limited to introduction in the investment calculations of collective preference of the present moment determined by environment.

Practice in this area, facing imperfection and with uncertainty of the financial markets, isn't so consecutive as the theory. Some enterprises, following recommendations of the neoclassical theory, apply a method of calculation of norm of discount on the basis of the average cost of the capital (ACC), SSK represents the average price in which to the enterprise own and loan sources of financing manage. However this method considerably теоритизован also is applicable only for the enterprises which actions are quoted at the exchange that complicates, or does it unacceptable, for many firms. Complexity of the accounting of all factors, able to affect change of cost of the capital in time and for temporary preference, causes difficulties, and the formalized procedures - doubt in definition of objective norm of discount. Therefore often the norm of discount is defined proceeding from value judgment of the qualified experts and heads. Some enterprises use as norm of discount average production profitability of the enterprise, average production profitability of branch, norm of compensation on loans, planned norms, etc.

Definition of a rate of discounting depends on concerning what enterprise the norm of discount is defined: state or private. For the state enterprises most often the norm of discount is set in a directive way, according to macroeconomic priorities - as a rule at the level of rates of national bank. For private enterprise definition of norm of discount acts as an element of its investment and financial policy, and is subordinated to microeconomic interests. Finally the problem of a rate of discounting which is considered a problem of integration of time and risk in the decision-making, undoubtedly one of the most uncommon in the investment analysis and so far doesn't exist absolutely acceptable technique of its definition. The most used methods of an assessment of the investments, based on discounting, act: ? method of the net specified (current) value; profitability method (turkeys of profitability); method of internal standard of profitability. The net specified value (Net Present Value, NPV) represents a difference between the discounted sizes of the sums of monetary receipts from investments and the sums of all monetary expenses for investments. Investment expenses can be single and stretched in time. For the first and second cases of a formula NPV differ a little:

N Ч CF Ч NPV = Y-CF - 10 Ч 6(1 + k) 0, (15.4)

where CFt - monetary receipts during t;

k - norm of discount;

I0 - single (initial) investments,

NPV = At (CF-1) Чt = 0.2k (1 + k),

where (CF-1)t - net monetary earnings during t.

If NPV of the investment project is positive, the discounted size of effect from its realization means is positive (the cost of firm increased) and the project is considered accepted. (15.5)

If the size NPV is negative, the project means at the chosen norm of discount is unprofitable. If NPV=0, additional calculations for result definition (if the received value isn't accepted) are required.

Sometimes implementation of the project is carried out not until the end of the provided term therefore count the NPV project for certain periods in all term of operation. Such analysis can show that it is more favorable to finish the project until the end of term of its operation. The assessment of an acceptability of investments on the basis of the NPV method allows to make economically rational decision at different combinations of initial conditions. However this method reflects the absolute growth of cost of the capital, without mentioning an absolute measure of such gain.

All considered methods of an assessment of efficiency of investments have the merits and demerits. In the practical analysis of efficiency of capital investments five of them are generally used: 1) ordinary and discounted RR, 2) ROI, 3) NPV, 4) IRR and MIRR, 5) PI. The large enterprises having everything of the basis seriously to be engaged in the investment analysis, as a rule count everything. The computerization of analytical procedures as much as possible simplifies the corresponding calculations. Each of criteria bears information peculiar to it on the projects, characterizing various their (projects) of the party. The analytical base created as a result of a complex assessment, allows to make the investment decisions most fully answering to strategic and tactical targets of the enterprise.

Questions

1. Purposes and stages of estimating of capital investments

2. Not discounted methods of estimates of investments

3. The discounted methods of estimates of investments

Situational tasks

Situational problems.

Task 1.

Calculate the rate of discount, if you know that the cost of investment was 400,000 tenge, the annual cash flow 200 000 tenge.

Task 2.

The company is working at full capacity in three shifts per month makes an order for 5 million tenge. Wholesale buyer offers the company a monthly new order, which will incur additional variable costs of $ 6 000 000. tenge. What should be the minimum price of the contract?

Task 3.

The company manufactured and sold 5,000 units of product. Costs over a period of time amounted to 2000 000 tenge. What is the cost per unit of product?

Task 4.

Calculate the rate of discount, if you know that the cost of investment is 500 thousand tenge. Annual cash flow 250 000 tenge.

Task 5.

Calculate the payback period of the project, if you know that capital investment, financed investment project are 1000 000 tenge. The annual revenue from sales 200 000 tenge.

Task 6.

Calculate the value of the order The total demand for the period is 300 000 units Quantity ordered 300 units Execution cost per order is 2000 tenge.

Task 7.

Calculate the optimal order quantity Labor costs in setting up production are $ 90. Storage costs $ 2 Annual trade demand for 9000 units.

Task 8.

Find the future value of an investment Amount of the initial capital of 100 000 tenge Return on invested capital is 19 tenge Capital is invested for 2 years.

Target 9.

Calculate the payback period of the project, if you know that capital investment, financed investment project are 1000 000 tenge. The annual revenue from sales 200 000 tenge.

Problem 10.

Calculate the rate of discount, if you know that the cost of investment is 500 thousand tenge. Annual cash flow 250 000 tenge.

Target 11.

Find the profitability of the product, if it is known that the contribution margin per unit of product is 1000 tenge, unit price 500 tenge.

Target 12.

The company manufactured and sold 5,000 units of product. Costs over a period of time amounted to 2000 000 tenge. What is the cost per unit of product?

Target 13.

The company is working at full capacity in three shifts per month makes an order for 5 million tenge. Wholesale buyer offers the company a monthly new order, which will incur additional variable costs of $ 6 000 000. tenge. What should be the minimum price of the contract?

Target 14.

Calculate the rate of discount, if you know that the cost of investment was 400,000 tenge, the annual cash flow 200 000 tenge. Calculate effect of operating leverage.

Target 15.

Project growth in operating profit growth in output

Project	Growth in operating profit	Growth in output
1	20 000	120 000
2	5 000	11 000
3	60 000	15 000
4	70 000	16 000
5	80 000	17 000
6	90 000	18 000

Target 16.

Calculate the payback period The project is an initial investment Annual cash receipts

The project	is an initial investment	Annual cash receipts
1	2	3
А	100 000	20 000
Б	200 000	10 000
В	25 000	25 000
Г	600 000	70 000

Tests

1. The design analysis is:

1) system of the principles, methods and ways of acceptance the decision which allow to use rationally available resources for satisfaction of public and personal needs;

2) process of preparation, justification and selection of design decisions;

3) methodology which is applied to definition, comparison and justification of administrative decisions and projects that allows to carry out a choice and to make the decision in the conditions of limitation of resources;

4) set of the methodical principles which define sequence of collecting and ways of the analysis of data, methods of definition of investment priorities, ways of the accounting of a wide range of aspects for decision-making concerning implementation of the project;

5) methodology which estimates the project on the basis of comparison of its benefits and expenses.

2. Aspects of the design analysis can be:

1) technological analysis;

2) the institutional;

3) the financial;

4) the economic;

5) taken all together.

3. Makrosreda of the project is:

1) legislative base of the country;

2) project environment;

3) tax policy of the country in which the project is realized;

4) demographic, economic, natural, political indicators, also factors of scientific and technical progress and cultural environment;

5) not one answer not the true.

4 . The cycle of the project is time:1) from identification before completion of input of the project;

2) from project identification prior to project implementation;

3) from idea of the project before its implementation;

4) from the beginning of preparation of production of a product of the project before completion of its input;

5) project implementation.

5. The stock of financial power of the project defines:

1) the realization volume at which it is possible to reach the planned volume of profit;

2) the size of possible reduction of the income on condition of preservation of profitability of the project;

3) the size of the additional income which the businessman if the sales volume exceeds the design has;

4) percent of decrease in the income from realization for preservation of design level of profitability;

5) the boundary size of possible decrease in volume of sale without risk to receive losses.

6. The marginal income of the project is an income, which:

1) the company receives from sale of an additional unit of production;

2) the firm counts for definition of level of profitability;

3) remains from realization after compensation of variable expenses;

4) remains from realization after compensation of the general expenses;

5) remains from realization after compensation of constant expenses.

7. The operational lever (ливиридж) displays:

1) addition in an operational cash flow of rather interest gross revenue of sold production;

2) change of profit of firm of rather percentage change of volumes of realization;

3) percentage in sales volumes of production of rather percentage change;

4) percentage change in volumes of sale of production of firm of rather percentage change of expenses for production;

5) all answers true.

8. Projects are classified by coherence degree on:

1) alternative, independent, interconnected;

2) obligatory, optional;

3) urgent, postponed;

4) all versions of answers are right;

5) all versions of answers aren't right.

9. Projects are classified by urgency degree on:

1) alternative, independent, interconnected;

2) obligatory, optional;

3) urgent, postponed;

4) all versions of answers are right;

5) all versions of answers aren't right.

10. The investment phase of life cycle of the project contains stages:

1) technical design;

2) detailed design;

3) production marketing;

4) all versions of answers are right;

5) correct 1) and 3).

11. The preinvestment phase of life cycle of the project doesn't join a stage:

1) development and examination;

2) detailed design;

3) identification;

4) preparation;

5) construction.

12. The operational phase of life cycle of the project doesn't join a stage:

1) commissioning;

2) replacement and updating;

3) production marketing;

4) production operation;

5) correct 1) and 3).

13. Life cycle of the project is:

1) the concept which considers the project as sequence of phases, stages and stages, each of which have the name, and restriction in time;

2) project assessment the interested or independent organizations on are formal to criteria; assessment of administrative and managerial aspects of implementation of the project;

3) assessment of availability and price appeal of resources;

4) market tendencies and prospects of production which is made;

5) project assessment from positions of national interests and society as a whole.

14. Obvious benefits of the project is:

1) benefits which are caused by reduction of expenses, or receiving income;

2) benefits which accompany the project;

3) benefits from use of limited resources;

4) positive and negative results of the project;

5) all versions of answers aren't right.

15. Obvious benefits from the project arise thanks to change:

1) qualifications of workers;

2) physical volume of production;

3) realization places;

4) all three answers are right.

5) all versions of answers aren't right.

16. Implicit benefits of the project is:

1) the material benefits caused by increase in expenses or obtaining the additional income:

2) gained income from the best alternative use of an asset;

3) the lost benefits from use of limited resources;

4) collateral benefits which accompany the project, and can't be directly distinguished.

5) all versions of answers aren't right.

17. The alternative cost of the project is:

1) cost of the best option of use of a limited resource;

2) collateral benefits which accompany the project;

3) difference between positive and negative results of the project;

4) cost of alternative option of use of a limited resource;

5) all versions of answers aren't right.

18. The project A worth 330 thousand UAH is analyzed for carrying out preliminary researches of this project is already spent 30 000.грн. In parallel the firm develops two independent projects worth 700 000.грн. and 1500 000. UAH. The size of irrevocable expenses on to the project A will make:

1) 2,6;

2) 330;

3) 300;

4) 30;

5) all versions of answers aren't right.

19. Future cost is:

1) the sum of the income which the investor from implementation of the project after that plans to receive, it compensates the money enclosed by it;

2) the sum of money which the owner of the project in future condition of sale of this project can receive;

3) the sum of the means invested at the moment for which they have to turn through a certain period taking into account a certain rate of percent;

4) the size of a cash flow which will be received from the project during its realization;

5) the size of profit which the investor plans to receive.

20. As a cash flow of the project understand:

1) financial results of work of firm throughout a certain period of time;

2) difference between quantity of the received and spent means, real pure funds which arrive in firm (or are spent by it) throughout a certain period of time;

3) movement of financial assets of firm which is displayed in its balance for a certain period of time;

4) all monetary receipts which are carried out in firm at calculations with debtors and creditors;

5) the size of means which will be received from the project during its realization

21. The indicator of the net current value (NPV) shows:

1) the relation of the sum of the discounted benefits to the sum of the discounted expenses;

2) difference between the discounted sums monetary, receipts and the discounted cost of all expenses which arise at implementation of the project;

3) norm of discount at which the project is considered expedient;

4) the size of a cash flow which will be received from the project during its realization;

5) there is no correct answer.

22 . The internal standard of profitability (IRR) shows:

1) the relation of the sum of the discounted benefits to the sum of the discounted expenses;

2) outflow or receipt of money by every year of the project;

3) norm of discount, at which NPV=0;

4) the size of a cash flow which will be received from the project during its realization;

5) there is no correct answer.

23. Benefit/expense coefficient (In / C) it doesn't suit for selection:

1) independent projects;

2) dependent projects;

3) mutually exclusive projects with restrictions on the capital;

4) conditional projects;

5) there is no correct answer.

24. Profitability of investments (PI) shows:

1) the relation of the sum of the discounted receipts to the size of the discounted investments also displays efficiency of investments;

2) financial results of work of firm throughout a certain period of time;

3) norm of discount at which the project is considered expedient;

4) the size of a cash flow which will be received from the project during its realization;

5) there is no correct answer.

25. The marginal income of the project is an income, which:

1) the company receives from sale of an additional unit of production;

2) the firm counts for profit level definition;

3) remains from realization after repayment of variable expenses;

4) remains from realization after repayment of all expenses;

5) remains from realization after repayment of constant expenses.

26. The operational lever of the project displays:

1) percentage change in an operational cash flow of rather percentage change of quantity of sold production;

2) percentage change of profit of firm of rather percentage change of volume of realized production;

3) percentage change in sales volume of production of rather percentage change in price of goods;

4) percentage change in sales volume of production of rather percentage change of expenses for production;

5) there is no correct answer.

27. The analysis of sensitivity of the project carry out according to the scheme:

1) assessment of influence of each variable of the project (in case of an invariance of the others) at a size NPV (net current value;

2) calculation of elasticity of NPV;

3) determination of critical value of a variable and its possible deviation from the basic scenario of the project;

4) correct answer 2) and 3).

5) there is no correct answer.

28. The purpose of the marketing analysis of the project is:

1) assessment of commercial expediency of implementation of the project in this market;

2) justification of possibility of realization of a product in this market, receiving the set level of the income and a covering of expected level of expenses;

3) careful analysis of the economic environment of the project;

4) development of the concept of advance of a product of the project;

5) correct answer 1) and 2).

29. Can't develop the market of production of the project, the following actions:

1) stimulation of available consumers to buy more units of production;

2) stimulation of available consumers to buy production more often;

3) reorientation of consumers who buy production from competitors, on a project product;

4) belief of consumers who never bought earlier this production;

5) all answers correct.

30. Research of the market of production of the project should be begun with:

1) definitions of a condition and tendency of development of the world market of this production;

2) to the analysis of macroeconomic policy of the country in which it is planned to realize the project;

3) research of current trends in the technological sphere in which the project is realized;

4) definition of a level of demand on project production;

5) identification of the market on which the project will be directed.

31. The analysis of economic aspects макросреды doesn't include the project:

1) studying of an assessment of tendencies of obtaining the income in the country;

2) studying of level of economic integration;

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