Assessment of the impact of the cash flow of capital investments on the internal rate of return of the investment project
Abstract. The revelance of the study is that in the modern domestic and foreign literature about the internal rate of return, the issue of the influence of the variability of the valuation of the cash flow of capital investments on the IRR indicator of the investment project has not been worked out. Problem statement: due to insufficient research on the impact of the assessment of the cash flow variability of capital investments on one of the most important indicators of the investment project - IRR, there is a feasibility of working out the indicated issue.
Keywords: internal rate of return (IRR), investment project, indicators of investment efficiency, cash flow of capital investments
Highlights:
♦ review of current domestic and foreign studies of IRR has done;
♦ the method of IRR calculation in three scenarios of the investment project implementation is proposed: basic, optimistic and pessimistic ones and an example of one implemented investment project at the stage of feasibility study of investments by the proposed method;
♦ analysis of the impact cash flow determination variability of capital investments on the IRR of investment project has been completed.
Dmitrii A. Guzhev - BRICS University (UniBRICS), Moscow, Russia