# Advice 1: How to calculate the economic impact

The introduction of something new or changing technology in the workplace is to achieve a certain result. Performance can be measured using specific indicators. These include economic efficiency.
You will need
• - data on costs and profits of the enterprise;
• calculator
Instruction
1
It is necessary to distinguish indicators of economic efficiency and economic efficiency. The first of these is a result of the activities of enterprises in absolute terms. It can be attributed to the amount of sales, revenues or profits. Is calculated as follows: e = N-SN is the result deyatelnosti Costs
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This effect is expressed in rubles. As an example we can consider the introduction of a new line for the production of lemonade gives economic effect in year 100 million.
3
Positive economic impact is observed when the results justify the costs. This is the profit. If the value of the resources expended exceeds the results obtained, there is a negative economic impact or loss.
4
Economic efficiency is a relative measure that acknowledged the result with the resources spent on it. It can be defined by the formula: EF = P/Z
5
The main company activity is profit. However, using it is very difficult to draw valid and accurate conclusions about the profitability of the event. It is therefore advisable to use in the analysis of efficiency indicators of profitability. They are in the form of a ratio or percentage. It is possible to allocate the following factors, which are used in the calculations: return on sales, assets, equity etc.
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Annual or cumulative effect is determined, if there is a positive effect over a long period of time. GEF = p t-ЗtПt is the results of the calculation period tЗt the cost of the event, the estimated period t

# Advice 2 : How to calculate economic efficiency

To calculate the economic efficiency of any project. The result will depend on the selected factors influencing the final performance indicator. The final terms will be judged, whether to develop and implement the project.
Instruction
1
Define generalized indicators of socio-economic efficiency. This group includes: integral income, payback period, profitability index. If our innovation is provided for the production of upgraded products, shall include the following indicators: indicator quality, competitive price, the volume of import-substituting production and exports.
2
It is necessary to calculate the result of the inflow of funds (profit) from implementation of the project. To profit, you must include: revenues from sales on the domestic and foreign markets, direct financing, indirect financial results, revenues from other sales.
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Counting all the costs of the project. Calculated as the sum of the costs of production and operation of the project.
4
Take into account time factors. The funds at the time of implementation of the project have greater value than in subsequent years.
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Taking into account related results. Implementation of the project, with equal effects with other counterparts in the market. The result includes: the difference value of the cost of production, reducing the actual damage, not the volume of manufactured products, with simple equipment.
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To account for risk and uncertainty and a way forward in case of unfavorable outcome.
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It should be noted that determination of the effectiveness abroad – this is a very topical field of problems. But foreign methodology has several disadvantages:
- there is not a reasonable approach to the choice of the calculation period;

- no guidance on accounting for losses with the change of the working equipment;

- modified the problem of the annual inflation.
Thus, it is better to use the methodology tested by many users.

# Advice 3 : How to calculate profitability

Profitability is often considered as indicator of the efficiency of the enterprise, that is, the ratio of net profit to net costs. However, in practice the calculation of indicators of profitability compounded by a number of reasons and additional parameters.
You will need
• Calculator, Notepad and pen, accounting records for the activities of the organization
Instruction
1
Define the measure of profitability (efficiency) of production activities. Otherwise this figure is called balance profitability:Profitability = balance sheet total net profit / (Average value of current assets + average fixed assets) * 100%.According to this formula, the rate will be slightly overestimated as in the balance sheet reflects the profit from all activities of the organization and not just from the manufacturing process. So are considered indicators of profitability of total assets and an indicator of profitability of own capital.
2
Calculate an indicator of profitability of total assets. This parameter shows the efficiency of use of personal property of the organization and is calculated according to a formula:Return = (Balance sheet profit / balance sheet assets Amount)*100%.
3
Calculate an indicator of profitability of own capital. This parameter is an indicator of the efficiency of use of invested in the organization of capital and is calculated by a special formula:Profitability = (Net profit / equity capital) * 100%.This indicator, as a rule, interests of shareholders and investors.
4
Calculate the profitability of products. In order to calculate the profitability of products as a performance indicator of the cost of sale or production, you must use the following formula:Profitability = (Profit from sales / total cost of products) * 100%.
5
Calculate the return on sales. Profit margin is an indicator which characterizes the efficiency of cost of sales. For its calculation we use the formula: Profitability = (Profit from sales (sales) / Cost of products sold) * 100%.
Useful advice
The correct calculation of the profitability indicators show the company detailed analysis of the competitiveness of its products in the market, and will also give a boost to increase volume sales and adjustments to the production process.

# Advice 4 : How to calculate economic profit

If you set a goal to increase the efficiency of trading firms, the "lay" in the margin product the expected profit. What is the result you will achieve depends on the method of calculation of allowances. If we are talking about small shops, define trading margin "manually" and you don't have to spend money on expensive software. Start from the total turnover, the turnover of the average percentage of range of remaining goods.
Instruction
1
Count the gross income on the total turnover, if a single percentage markups applied to all items. In this case, first install gross income, then determine the margin. To calculate gross income, total turnover multiply by the estimated allowance trading, and the result divide by one hundred. To calculate markup, you first fold 100 and the markup percentage, then the same allowance trading divide by the result.
2
If in your case you are working with is not the same allowance for different groups of goods, calculation of profit is complicated. Be sure to keep records of trade. To calculate gross income in this situation, first multiply the markup of each commodity group to the value of their trade, then add up all the results and divide the sum by one hundred.
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Can you calculate the profit to use the bonus at the average percentage, if take into account the goods at sale price. To get the value of the gross revenue at the average percentage, multiply the value of turnover on the average percentage of the gross income. The result, divide by 100. If you need to find the average percentage of gross income, first fold the allowance trading for the rest of the products in the beginning of the reporting period and the margin on the received current time products. From the amount deduct the trading margin for the outgoing (write-off or refund). This is your first result, calculating the average percentage. Now fold the amount of the turnover and the balance at the end of the reporting period, the amount, divide by 100, you got the second result. Now the first result to divide on the second result.
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If you expect gross revenues to range balance, consider the amount of trade margins. For this record accrued sales allowances to each product. At the end of the month inventory, to determine these amounts. To calculate gross income in the range of the rest of the goods, first fold the allowance trading balance of goods in the beginning of the reporting period and allowance trading for goods received during the same period, from the amount subtract the trade allowance for the outgoing goods, and from the result subtract the margin on the balance at the end of the reporting period.

# Advice 5 : How to determine the economic effect

Definition of economic effect shows how profitable a company to carry out a particular activity. The indicators are measured by the difference of the income from the activities of the enterprise and the costs spent on its implementation. Identify the economic effect is important in the implementation of the investment project.
Instruction
1
Choose a convenient financial method for calculating economic effect: NPV (Net present value) – net present value (also called net present value), IRR (Internal rate of return – internal rate of return, Payback period – the payback period of the invested funds in the project.
2
The formula for calculating NPV is given below:NPV = NCF1/(1+Re)+...+NCFi/(1+Re)I where
NCF (or FCF – free cash flow – net cash flow at the i-interval scheduling;
Re – discount rate.
NPV means given income, i.e. income from the project is given at this point in time, not future. If NPV is greater than zero, then the funds will certainly appear in the result of the project. Thus, the NPV shows the feasibility of implementing the particular activity. If NPV is less than zero, forget about this project, the profits it will bring.
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Internal rate (rate) of return (return on investment) (IRR) is an absolute value, in contrast to the NPV. The value of IRR is a measure of the discount rate at which NPV equals zero. Therefore, determine the internal rate of return at the rate of Bank interest, which the project does not get neither profit nor loss. For understanding of dependence of the NPV and IRR from the plot. In the figure, at low discount rate, the company gets profit, increasing the IRR, the profit of the company decreases.
4
Identify the payback period of invested money in the project (payback period). Analyze your project with an annual return of investment. The maximum payback period can be set by the enterprise, the main determine whether to return all the money spent on the project in time. Hoping one of these three indicators, you will not be able to fully determine the economic effect of the project, and only in the comparison of all indicators actually get the final conclusion on profit, profitability and the payback period of the project.
Note
Keep in mind that when calculating the NPV does not take account of the risks, therefore when comparing several projects using NPV, determine risks and make adjustments in order to identify all the projects that interest one that gives the most desired budget.
Useful advice
Using the absolute measure of IRR, rate the projects and compare them to each other. Due to the discount rate, are determined by the risks on the project and compares the profit with taking risks.

# Advice 6 : How to calculate thermal effect

The thermal effect of a thermodynamic system appears due to chemical reactions, however, one of its characteristics is not. This value can only be determined when some conditions are met.
Instruction
1
The concept of thermal effectand is closely related to the concept of enthalpy of a thermodynamic system. This thermal energy which can be converted into heat at a certain temperature and pressure. This value characterizes the equilibrium state of the system.
2
Any chemical reaction is always accompanied by the absorption or release some amount of heat. In this case, the reaction refers to the impact of reagents on the system products. Thus, there is a thermal effectthat is associated with the enthalpy change of the system and its products are taking the temperature reported by the agents.
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In ideal conditions, the thermal effect depends on the nature of chemical reactions. These are the conditions under which it is assumed that the system does no work other than work of expansion, and the temperature of its products and influencing the reactants are equal.
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There are two types of course of the chemical reaction: isochoric (at constant volume) and Isobaric (at constant pressure). Formula thermal effectas follows:dQ = dU + PdV, where U is the energy of the system, P – pressure, V – volume.
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In isochoric process PdV term vanishes because the volume doesn't change, does not expand the system, so dQ = dU. In the Isobaric process the pressure is constant and volume increases, which means that the system does work of expansion. Therefore, when calculating the thermal effectand the energy change of the system plus the energy spent on committing this work: dQ = dU + PdV.
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PdV is constant, so it can be made under the sign of the differential, hence dQ = d(U + PV). The sum U + PV fully reflects the state of a thermodynamic system, and corresponds to the enthalpy. Thus, enthalpy is the energy expended in the expansion of the system.
7
Most commonly count thermal effect of two types of reactions is the formation of compounds and combustion. The heat of combustion or formation – table value, therefore the heat effect of reaction in the General case can be calculated by summing the warmth of all the participating substances.
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