Methods of Estimating Risk Dealing with Declining Efficiency of Investment Project in Conditions of Statistic Uncertainty

The article analyzes different approaches to estimating risk of declining efficiency of investment projects that are recommended to practical use by academic literature. The author pointed to their subjectivity and high uncertainty of results. As an alternative we can consider approaches and methods...

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Main Authors: N. P. Tikhomirov, T. M. Tikhomirova
Format: Article
Language:Russian
Published: Plekhanov Russian University of Economics 2024-03-01
Series:Вестник Российского экономического университета имени Г. В. Плеханова
Subjects:
Online Access:https://vest.rea.ru/jour/article/view/1903
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author N. P. Tikhomirov
T. M. Tikhomirova
author_facet N. P. Tikhomirov
T. M. Tikhomirova
author_sort N. P. Tikhomirov
collection DOAJ
description The article analyzes different approaches to estimating risk of declining efficiency of investment projects that are recommended to practical use by academic literature. The author pointed to their subjectivity and high uncertainty of results. As an alternative we can consider approaches and methods of estimating risk of declining efficiency of the investment project as a difference between the expected by the project and risky values of its NPV defined by the law of this figure distribution. In this case the risky NPV assessment depending on the ratio to risk is either its average value in the field of existence limited from above by expected in the project value or any quantile located in the field of possible NPV values. The article presents substantiation of the standard law of NPV distribution as a complicated random value formed by a sum of random variables, i.e. features of finances flows by the project and discount. The author also analyses the approach to estimating dispersion of the NPV distribution law and risky values depending on its amount based on this figure expansion into the Tailor series with initial data showing average values and dispersion of its finance flows and discount.
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publisher Plekhanov Russian University of Economics
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series Вестник Российского экономического университета имени Г. В. Плеханова
spelling doaj-art-bfa73c6032c9475493a5dfb8f64c3ff32025-08-20T03:36:48ZrusPlekhanov Russian University of EconomicsВестник Российского экономического университета имени Г. В. Плеханова2413-28292587-92512024-03-0102283510.21686/2413-2829-2024-2-28-351205Methods of Estimating Risk Dealing with Declining Efficiency of Investment Project in Conditions of Statistic UncertaintyN. P. Tikhomirov0T. M. Tikhomirova1Plekhanov Russian University of EconomicsPlekhanov Russian University of EconomicsThe article analyzes different approaches to estimating risk of declining efficiency of investment projects that are recommended to practical use by academic literature. The author pointed to their subjectivity and high uncertainty of results. As an alternative we can consider approaches and methods of estimating risk of declining efficiency of the investment project as a difference between the expected by the project and risky values of its NPV defined by the law of this figure distribution. In this case the risky NPV assessment depending on the ratio to risk is either its average value in the field of existence limited from above by expected in the project value or any quantile located in the field of possible NPV values. The article presents substantiation of the standard law of NPV distribution as a complicated random value formed by a sum of random variables, i.e. features of finances flows by the project and discount. The author also analyses the approach to estimating dispersion of the NPV distribution law and risky values depending on its amount based on this figure expansion into the Tailor series with initial data showing average values and dispersion of its finance flows and discount.https://vest.rea.ru/jour/article/view/1903investment projectefficiencyrandom figuredistribution lawriskquantiledispersiontailor series
spellingShingle N. P. Tikhomirov
T. M. Tikhomirova
Methods of Estimating Risk Dealing with Declining Efficiency of Investment Project in Conditions of Statistic Uncertainty
Вестник Российского экономического университета имени Г. В. Плеханова
investment project
efficiency
random figure
distribution law
risk
quantile
dispersion
tailor series
title Methods of Estimating Risk Dealing with Declining Efficiency of Investment Project in Conditions of Statistic Uncertainty
title_full Methods of Estimating Risk Dealing with Declining Efficiency of Investment Project in Conditions of Statistic Uncertainty
title_fullStr Methods of Estimating Risk Dealing with Declining Efficiency of Investment Project in Conditions of Statistic Uncertainty
title_full_unstemmed Methods of Estimating Risk Dealing with Declining Efficiency of Investment Project in Conditions of Statistic Uncertainty
title_short Methods of Estimating Risk Dealing with Declining Efficiency of Investment Project in Conditions of Statistic Uncertainty
title_sort methods of estimating risk dealing with declining efficiency of investment project in conditions of statistic uncertainty
topic investment project
efficiency
random figure
distribution law
risk
quantile
dispersion
tailor series
url https://vest.rea.ru/jour/article/view/1903
work_keys_str_mv AT nptikhomirov methodsofestimatingriskdealingwithdecliningefficiencyofinvestmentprojectinconditionsofstatisticuncertainty
AT tmtikhomirova methodsofestimatingriskdealingwithdecliningefficiencyofinvestmentprojectinconditionsofstatisticuncertainty