Increasing the Efficiency of Industrial Enterprise Investment Projects through Cash Flow Management

Abstract

Objective and subjective factors of influence on the nominal and actual size of a cash flow of the project in the form of the scheme are opened. The analysis of method of calculation of a discount rate and award for risk is made. On analysis results, in article it was offered to exclude an indicator of an award for risk from a formula of calculation of a discount rate and to research it separately as the certain managed size influencing the nominal, but not actual size of cash flows of the project. It gave the chance to technically reduce value of a discount rate and by that to increase the NPV real value of the project. Designations of negative and positive factors project risks are entered. Availability and an opportunity positive influence of factors risks on the project is proved. The formulas of calculation of the modified cash flow, effect and effective management of cash flows of the project differing on structure, content and entering of the additional positive amendment on risk are offered. It will give the chance to reduce or eliminate negative influence of objective and subjective factors risks, and in certain cases and in addition to raise project NPV. For assessment of levels of effective management of cash flows the verbal scale is offered.