Kabanov V.N.Voronezh Institute of Law and Economics, Stary Oskol Branch, Stary Oskol, Belgorod Oblast, Russian Federation kabanovvn@yandex.ru
Subject The subject of the research is quantitative indicators of company's financial and business operations. The investor's demands for an economic effect of the investment project are described by the company's ability to fully discharge its obligations within an agreed timeframe. Objectives The aim of the study is to offer a simple way to evaluate the economic effect of business projects. The offered method should be tailored to the Russian business specifics. The objective is to establish a procedure for calculating the values of indicators according to the Russian accounting system. Methods The study rests on the methods of algebra and analytical geometry. Mathematical methods describe the rules established by the Russian laws. Results The study findings show the analytical dependence of profits on lending conditions (interest rate and duration). Dependence of profits on conditions of investment promotion (interest rate and duration) enables to limit the number of economic efficiency criteria to the minimum. Using the dependence of one economic efficiency criterion (return on assets) on investment conditions (duration and interest rate) provides the required level of reliability of the calculations. Conclusions and Relevance I offer a simple method to evaluate the cost-effectiveness of business projects. It differs from standard methods, as it considers the specifics of entrepreneurial activities in the Russian Federation. The augmentation of knowledge is in the algebraic reasoning of dependence of the economic efficiency criterion on the conditions for attracting investment.
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