Authors : Vladimir A. Kalugin, Elena A. Monakova, Olga S. Pogarskaya and Darya I. Korolkova
Abstract: The use of the traditional discounted methods as tools by taking investment decisions to a large extent relies on the ability of economists and financial analyst to provide substantiated estimates in respect of the expected cash flows within the investment projects being analyzed at each stage of the accounting period. The basis of these estimates is made of the initial assumptions in respect of: the future level of business activity, actions of competitors, cost of the factors of production, volume of sales, etc. Since, each of these elements is characterized by high level of uncertainty the estimated figures in the best case represent only the outlines of the future results of activity aimed at implementation of the investment projects. In the study, the improvement of the system of assessment of investment projects is proposed that is based on the methodology of analysis of hierarchical structures that allows estimating the investment projects by the ratio scale at each stage of the accounting period having included in the estimate the ‘cost’ of managerial options.
Vladimir A. Kalugin, Elena A. Monakova, Olga S. Pogarskaya and Darya I. Korolkova, 2015. Taking Account of Managerial Options Within the Frameworks of Taking Investment Decisions. International Business Management, 9: 966-968.