Evaluation of the Effectiveness of Investment Projects of Agricultural Enterprises

Purpose. The purpose of the study is to evaluate the effectiveness of investment projects using the example of agricultural enterprises in Ukraine. Evaluating the effectiveness of investment projects is one of the most important stages in the investment management process. Therefore, the correctness of the final management decision depends on the quality of such an evaluation. Methodology. The effectiveness of invested capital is assessed by comparing the cash flow generated during the operation of the investment project and the initial investment. A project is considered profitable if all investments are returned at a rate of return acceptable to all investors. It is mandatory to bring both the invested capital and the amount of cash flow to their present value. The assessment of an investment project first involves an analysis of the feasibility of the investment project and then the degree of interest and satisfaction of each of the participants. Results. In the real investment management system, assessing the effectiveness of investment projects is one of the most important stages. The terms of return on invested capital, options for its alternative use, and additional profits for the enterprise in the future depend on how objectively and comprehensively this assessment is carried out. This objectivity and comprehensiveness are largely determined by the use of modern methods of assessment. Scientific novelty and practical significance. Based on our research, prospective investors can assess the present and future value of cash flows, the potential profitability of agricultural enterprise development projects, and analyse several investment projects according to this principle to determine the effectiveness of each, on the basis of which they can make a comparative assessment and make an informed decision. The research will provide developing countries with a tool for determining the quality of investment proposals and promoting the standardisation of industrial technical and economic studies. The developed methodology is a unified form of information exchange between financial analysts, managers and investors. Analysis using this methodology includes net present value and internal rate of return indicators, which allows for a relative assessment of a project’s investment attractiveness.