Determination of the growth rate of fixed assets, depending on a number of technical and economic parameters. Estimation of investment decisions by means of discounting of cash flows of capital reproduction. Impact of lending rates on practical dynamics.
Аннотация к работе
УДК 338.43.02 Lviv Polytechnic National University, Lviv, Ukraine THE METHOD OF QUANTITATIVE ANALYSIS OF THE FIXED ASSETS DYNAMICS AND ALTERNATIVE CHOICE OF INVESTMENT S DECISIONS V. Voytsekhovskyy Introduction. Development of production is a dynamic process that is characterized by certain objectives, characteristics and laws. An important part of this should be considered the detection of variants of this process, in particular, on the basis of studies of causation, and the development of methods of economic evaluation of options and their comparison.The study of fixed assets dynamics requires such scheme of their rennovation, which would use the number of indicators, such as its lifetime, retirement and commissioning funds, the change in the resources allocated to upgrade and increase the assets. Analysis and presentation of research. In the economic literature, towards its development problems study the substantial role play the production function, which describe the dynamics of growth of production according to production factors changes [7]. An example of such a relation is called Cobb-Douglas production function, where main resources are the labor and capital assets. In quantitative terms, the capital growth dominates in development processes and calls for appropriate special studies. Various aspects of fixed assets expanded reproduction in several papers related to assets valuation [2] of fixed assets accounting [3], the economic impact of financing investment costs [4], evaluation of investment projects [5], crediting projects [6], investment support of innovation [8]. At the same time the study offixed assets dynamics should not be considered complete, especially for common multifactorial quantitative laws regarding rates of reproduction of capital, which is the subject of this article. Main research. In order to take into consideration all features listed above concerning the processes of its development, we propose the following version of fixed assets renovation interpretation, when their lifetime is equal to T years [1]: On the scheme given above, the arrow shows updates for fixed assets (FA). For example, in the first retiring year the function value of FA is F0 while new FA - FT are being introduced instead. We assume, that the acquisition of these FA, were done at the expense of financial resources - profit and depreciation. Generally, for accumulation purposes profit is only partially used, which is equal to (a) and amortization, calculated on the relevant standards (aF). Taking into account the cost of FA in the first year and using the rentability (r), we determine the cost of new assets by carrying equality: Ft- (ar aF)( Fo Fj -K.. Ft_i). In the future we will be mainly analyzing the dynamics of FA with constant growth rate (q).