FINANCING OF INVESTMENT PROJECTS, Essence and classification...

FINANCING INVESTMENT PROJECTS

As a result of studying this chapter, the student must:

know

• The theoretical nature, functions and basic principles of the organization of financial and investment management, their information support;

• the laws of the development of nature, society and thinking and be able to operate with this knowledge in professional activities;

• the fundamentals of organizing the management of real and financial investments, the formation of innovative resources;

be able to

• Develop options for management decisions and justify their choice based on criteria for socio-economic efficiency;

• use regulatory legal documents in their activities;

• Analyze information and statistical materials but assess the financial and investment performance of the organization, using modern methods and indicators of evaluation;

• use modern methods to assess the effectiveness of financial activities, investment projects and financial instruments in practice;

own

• the skills of a reasonable choice of the method of financing the activities of the organization, taking into account internal capabilities and environmental factors;

• the ability to assess the impact of investment decisions and financing decisions on the growth of the value (value) of the company;

• The ability to independently acquire (including through information technology) and use in practice new knowledge and skills, including new areas of knowledge not directly related to the field of activity.

The essence and classification of methods for financing investment projects

Differentiate the sources and methods of financing investment projects. Under source of financing investment projects means funds and cash flows that can be used as investment resources for financing investment activities. The financing methods of investment projects are the ways in which sources of financing are formed.

At the core of the market economy at the organization level is a five-element financing system:

- self-financing;

- direct financing through capital market mechanisms;

- bank lending;

- budgetary financing;

- mutual financing of economic entities.

Methods of financing investment projects are based

on attracting own, attracted and borrowed sources of financing (Figure 11.1).

Fig. 11.1. Basic methods of investment financing

Projects

Investigate the structure of sources of financing investments in fixed assets in the United States (Table 11.1).

Thus, investment in fixed assets is carried out to a greater extent at the expense of attracted sources, among which budgetary funds prevail. In recent years, there has been a positive trend in increasing the share of financing from the federal budget, loans from banks and household funds for shared construction.

Table 11.1

Structure of sources of financing of investment in fixed assets in the United States in 2000-2013,%

Types of funding sources

2000

2005

2010

2011

2012

2013

Custom Tools

47.5

44.5

41.0

41.9

44.5

45.3

The funds raised, including:

52.5

55.5

59.0

58.1

55.5

54.7

Bank loans

2.9

8.1

9.0

8.6

8.4

10.0

Including foreign banks

0.6

1.0

2.3

1.8

1.2

1.1

Borrowed funds of other organizations

7.2

5.9

6.1

5.8

6.1

6.2

Investments from abroad

-

-

-

-

-

0.8

Budgetary funds, including:

22.0

20.4

19.5

19.2

17.9

19.0

Federal Budget

6.0

7.0

10.0

10.1

9.7

10.0

Local budget funds

-

-

-

-

1.1

1.5

Means of off-budget funds

4.8

0.5

0.3

0.2

0.4

0.5

Funds of organizations and population for shared construction, including:

3.8

2.2

2.0

2.7

2.9

Population resources

-

-

1.2

1.3

2.1

2.3

Other

15.6

16.8

21.9

22.3

20.0

15.5

Investments in fixed assets, total

100.0

100.0

100.0

100.0

100.0

100.0

time, the share of financing is reduced due to such sources as funds of off-budget funds, borrowed funds of other organizations.

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