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Economic Analysis: Theory and Practice
 

Regression model of investment project efficiency for administrative building construction and operation

Vol. 24, Iss. 5, MAY 2025

Received: 28 December 2024

Accepted: 27 January 2025

Available online: 15 May 2025

Subject Heading: EVALUATION OF INVESTMENT PROJECTS

JEL Classification: C32

Pages: 132-145

https://doi.org/10.24891/ea.24.5.132

El'vira I. SHAGIAKHMETOVA Kazan State University of Architecture and Engineering (KSUAE), Kazan, Russian Federation
elvirale@mail.ru

https://orcid.org/0000-0002-0475-4374

El'mira R. MUKHARRAMOVA Financial University under Government of Russian Federation, Moscow, Russian Federation
emrra@yandex.ru

https://orcid.org/0000-0002-5228-7088

Maiya I. SHAGIAKHMETOVA Kazan State University of Architecture and Engineering (KSUAE), Kazan, Russian Federation
mayyashagiakhmetova@yandex.ru

https://orcid.org/0009-0005-2196-5826

Subject. The article deals with multiple regression analysis of the impact of factors on investment project performance.
Objectives. The study aims at developing a regression model of efficiency of an investment project for construction and operation of an administrative building.
Methods. The study employs the net present value calculation of the project, internal rate of return, discounted payback period, rate of return, single-parameter modeling, and multiple regression analysis.
Results. The paper considered the influence of independent factors on the resulting indicators of construction and operation of an administrative building in Kazan. One-parameter modeling showed the impact of each of the selected independent variables on the resulting indicators. Multiple regression analysis enabled to determine what influences the net present value of the project. Furthermore, the cost of land plot has a greater impact on this indicator than the operating costs and rates for loans. Internal rate of return is maximally influenced by rental rate, timing and cost of construction.
Conclusions. Calculations demonstrate that 87.6% of changes in the net present value are due to selected factors and only 12.4% are unaccounted for in the model. For the internal rate of return, the dependence on these factors is even higher.

Keywords: administrative building, economic efficiency, investment project, net present value, regression model

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