ACCOUNTING FOR INFLATION PROCESSES IN THE ANALYSIS AND EVALUATION OF THE EFFECTIVENESS OF INVESTMENT PROJECTS
Yusufaliev Abdulkhamid
Keywords: inflation, investment projects, NPV, inflation risks, financial analysis
Abstract
The article is devoted to the analysis of the impact of inflation on the assessment of the effectiveness of investment projects and the development of methods for accounting for inflation processes. Inflation forecasting, cash flow adjustments and accounting for the heterogeneity of income and cost inflation are considered. A modified NPV formula is presented that takes into account inflation adjustments, and scenario approaches for integrating inflation risks are proposed. The developed methods ensure increased accuracy of financial analysis and sustainability of investment decisions in an unstable economy.
References
1. Vorontsovsky, A. V. Risk assessment: textbook and practical training for universities / A. V. Vorontsovsky. - Moscow: Yurait Publishing House, 2023. - 179 p. - (Higher education). - ISBN 978-5-534-02411-1.
2. Shveikin I. E., Varlamova T. P., Plotnikova M. V. «Investment projects. Risk analysis and efficiency assessment». - 12th ed. - St. Petersburg: Lan, 2027. - 180 p.
3. Ibragimov R.G. «Inflation effects and their modeling in investment assessment problems» Financial Analytics: Problems and Solutions, no. 26 (260), 2015, pp. 33-52.
4. Lentsova, A. V. (2013). Problems of accounting for inflation when evaluating an investment project and its impact on performance indicators. Scientific results of the year: achievements, projects, hypotheses, (3), 185-191.
5. Yakovleva N.A. Ya47 Analysis of the effectiveness of investment projects (taking into account the time factor, risk and inflation): Textbook - Minsk: BSU, 2000. - 63 p.
6. Kuznetsov B. T. Investment analysis: textbook and practical training for universities / B. T. Kuznetsov. - 2nd ed., corrected. and additional. - M .: Publishing house Yurait, 2020 - 363 p.
7. A. A. Kurilova and T. V. Polteva “The Impact of Inflation on the Performance Indicators of an Investment Project // Vector of Science. - 2015. - No. 4. - P. 56-58.
8. Sporov, D. S. Principles of assessing the effectiveness of an investment project and taking into account risks when assessing effectiveness / D. S. Sporov. - Text: direct // Young scientist. - 2024. - No. 48 (547). - P. 114-116.
9. Mahlstedt, M., & Zagst, R. (2016). Inflation Protected Investment Strategies. Risks, 4(2), 9. ttps://doi.org/10.3390/risks4020009.
10. Yuliawan, Rahmat & Murdiawati, Murdiawati & Faqih, Mustofa & Haris, R. (2024). The Impact of Monetary Policy, Inflation Rates, and Foreign Direct Investment on Economic Growth in Developing Countries. Join: Journal of Social Science. 1. 373-380. 10.59613/gjq7cm27.














