£109.50
Efficiency of Investment Projects
Modern Investment Models and Their Applications
Existing investment models
Fail to correctly assess the efficiency of investments. This happens due to both the lack of self-consistent models based on first principles and the inability to correctly assess the discount rate.
About the book
This book describes innovative investment models tested in practice. The authors modify these models for real implementation conditions, including frequent payments of income tax and interest on debt at the end of periods and as advance payments, and variable payments.
Focus of the analysis
The book examines how these types of payments influence the efficiency of investment projects. It considers the efficiency of an investment project from two perspectives: the owners of equity and debt, and only the equity.
Theories of capital structure
The latest versions of two main theories of capital structure (Brusov–Filatova–Orekhova (BFO) and Modigliani–Miller (MM)) allow for the correct assessment of the discount rate when evaluating the efficiency of investment projects (both long-term and of arbitrary duration).
Practical applications
The book also describes the practical application of the created investment models and develops a new methodology for rating investment projects.
