Abstract.

The article is devoted to multicurrency investment project evaluation. A number of lemmas and theorems about invariance of criterial estimations that can be useful when evaluating investment projects with several currencies are proved in the paper. We consider both one-country and polycountry multicurrency investment projects. We show that different ways of efficiency indicators calculations if performed correctly lead to the same result. The efficiency of investment projects is determined on the basis of net present value criteria (NPV).

Keywords:

investment project; investment project evaluation; multicurrency investment project; inflation; multicurrency inflation; deflation of cash flows; invariance of investment project estimations; net present value; NPV.

PP. 3-16.

DOI: 10.14357/20790279180401

References

1. Vilensky V.P., Vilensky P.L., Glumova E.V. Investment project efficiency evaluating in multicurrency situation // Investment efficiency evaluation. – M.: CEMI RAS. ‒ 2006. ‒ Vol. 3. ‒ 28-34.
2. Vilensky P.L, Livshits V.N. Investment analysis: textbook for MBA program, studying in the field of “Strategic management” and “Finance” / NRU Higher school of Economics, Higher school of management. – M.: Business Alignment, 2013. – 352 p.
3. Vilensky P.L., Livshits V.N. Investment project efficiency evaluation with real characteristics of the economic environment // Audit and financial analysis. ‒ 2000. ‒ No. 3. ‒ 97-137.
4. Vilensky P.L., Livshits V.N., Smolyak S.A. Investment project efficiency evaluation: theory and practice: textbook. – 4-th edition. – M.: Delo, 2008. – 1104 p.
5. Vilensky P.L., Smolyak S.A. Evaluation of investment project efficiency under payments in different currencies // Audit and financial analysis. ‒ 2000. ‒ No. 1. – 6 p.
6. Dmitrieva N.A. Project efficiency evaluation methodology under inflation and multicurrency consideration // Audit and financial analysis. ‒ 2015. ‒ No. 1. ‒ 220-236.
7. Dmitrieva N.A. Multicurrency investment project evaluation: the use of traditional and nontraditional methods of valuation // Works of Institute of system analysis of Russian Academy of Science. Investment and innovation.; edited by Orlova E.R. – M.: LENAND, 2009. ‒ Vol. 49. – 56-67.
8. Dmitrieva N.A. Multicurrency investment project efficiency under inflation impact // Works of Institute of system analysis of Russian Academy of Science. ‒ 2013. ‒ Vol. 63; No. 1. ‒ 56-61.
9. Kossov V.V., Livshits V.N., Shakhnazarov A.G. Methodical recommendations on investment projects efficiency evaluation. ‒ 3rd ed. ‒ M., 2008. Available at: http://www.isa.ru/images/Documents/metod.zip.
10. Livshits V.N., Livshits S.V. Macroeconomic theories, real investment and Russian economic policy. – M.: Publisher LKI, 2008. – 248 p.