Advice 1: How to calculate capex

Before you make any major investments in the business, you need to calculate their possible effectiveness. Without these data, increases the likelihood of squandering a large amount of funds. capital investment?
How to calculate capex
Instruction
1
Measurement of efficiency of capital investments engage in all stages of planning. In the design of any facilities efficiency investment is defined by two numerical values (coefficients), General and comparative economic efficiency of capital investments. However, the overall economic efficiency, as a rule, is relative — the ratio of the effect to the right to obtain costs.
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Together with the economic performance index calculate the payback period of future capital expenditures.
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Determination of efficiency of investments is determined using the following formula: e = P/, where e is the efficiency of investment, and P is the profit over the expected period (quarter, year, five years, a longer period). It is your capital investments in the construction and development of the enterprise.
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If you want attachments of the large amount of investment in the sphere of production, somewhat complicated formula. It has the following form: e = (C – C)/K, where e is the efficiency of the enterprise, C – the annual release of the goods (excluding taxes), the cost of manufactured goods.
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For calculation in the field of trade, the formula becomes: e = (N – I)/K N is the sum of trade margins, and the letter And is the total amount of costs in the appeal.
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Calculate the payback period of your investment. It is calculated as the result of the relationship of the volume of investments in capital investments to profit in several formulas: T = K/N (General formula), T = K/(C – C) (in production) and T = K/(N – I) (in trade).
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The results of the calculation of the efficiency map with the normative indicators of possible performance or exactly the same figures for the earlier period. Capital investments can be considered cost-effective if the result of the calculation obtained measurement results of overall effectiveness are below standard.

Advice 2: What is capital expenditure

Capital investment is part of capitalocratic investment, a necessary condition for the normal functioning of the company. They are also called investments in non-current assets.
What is capital expenditure

The types of capital investments



Capital investments represent a long-term investment that can provide profit in the future. This, for example, R & d expenditures. You can select the following types of capital investments: the construction of facilities, expansion of the business by implementing new production facilities, reconstruction (reconstruction without the introduction of new capacity) and modernisation (the introduction of new technology, modernization). Faster economic returns are investments for reconstruction and technical re-equipment. This requires a smaller capital investment, and work is performed in a short time.

Organization may engage in investments not only in production but also in human capital. This, for example, the cost of improving workers ' skills and productivity. In this case, the costs can be offset by the increase in the income of the organization in the future.

From the point of view of the technological structure distinguish between investments in active and passive elements of fixed capital. Passive are those that are not directly involved in the production, but to create the necessary conditions. This, for example, investment in buildings and structures.

For the purpose of capital investments are divided into production (machines, equipment) and non (of the building).

According to the method of implementation of capital investments can be performed in an economic way (on their own) or contractors (third party companies).

From the perspective of sources of investment capital investments are carried out at the expense of own funds (deductions from profits, depreciation, at the expense of equity income, charitable contributions), and borrowed funds (loans, payables). Also, the number of funding sources there may be budget subsidies and foreign investment.

Efficiency of capital investments



Before the implementation of capital investments should always assess their effectiveness in economic and technical terms. In particular, produced a feasibility analysis, including development of production capacities and market research; forecasting of financial results, investments, and General economic analysis.

The results of the analysis draws conclusions about the changes in the various indicators of this activity. This, in particular, the additional yield on the ruble of capital investments. It is calculated by the formula: (gross production with further investment, - production of the original investment)/(the sum of capex).

Another analyzed indicator - the reduction of costs per ruble of capital investments. It is calculated as the volume of production after capex* (unit cost of production at the source - when you made the investment)/ (the sum of capex). Accordingly, the payback period can be calculated by the inverse formula: (amount of investment)/amount of product after capex* (unit cost of production at the source - when you made the investment).

Advice 3: How to calculate payback period

The rate of return on investment is a key criterion for the attractiveness of an investment project. The payback period enables the investor to compare different options for the business and choose the most suitable according to his financial possibilities.
How to calculate payback period
Instruction
1
Remember that payback period is the length of time from the initial stage (project implementation) up to the moment when it will be repaid. The payback time is considered the time after which the cash flow from the project becomes positive value and remains so.
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The method of calculating the payback period of the investment is to determine the period that will be needed to reimburse the initial cost of the investment. The payback period is an indication, will be reimbursed or not the initial investment during the life cycle of the project.
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There are two ways of calculating the payback period. If revenues from the project for all years are the same, the payback period can be calculated as follows:
PP = I/CF where:
PP – payback period,
I – the initial investment in the development of the project,
CF – the average annual value of cash receipts from the project.
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If cash flow by year is not the same, then the calculation of the payback period is carried out in several stages. First, find an integer number of periods over which the cumulative amount of proceeds of the project will be the closest to the original investment amount but surpass it. Then, calculate outstanding balance – the difference between the amount of investment and the amount received receipts. Then uncovered for the remainder divide by the amount of cash receipts of the following period.
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Note that these methods have some disadvantages. They ignore the difference in the value of money in time and the existence of cash receipts after the end of the payback period. In this regard, the calculated discounted payback period, which refers to the duration of the period of time from the initial moment to the moment of recoupment taking into account discounting.
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Remember that discounting is determining the present value of cash flows we will receive in the future. In other words, is transferring future value of money at present. In this case the discount rate is determined on the basis of percentage in safe investments based on interest on borrowed capital, according to expert estimates, etc.
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Discounted payback period is the most appropriate criterion for evaluating the attractiveness of an investment project, because it allows you to put in the project some risks, such as reduced income, increased costs, the emergence of alternative the most beneficial areas of investment, thereby reducing its nominal efficiency.

Advice 4: How to calculate the costs of treatment

Costs of the appeal prednisonebuy under a cost associated with the process of movement of goods from producers to consumers and expressed in monetary terms. Thus, it can be planned, accounted and recorded in the accounts in absolute amounts (in LCY) or in relative values (in percent).
How to calculate the costs of treatment
Instruction
1
Group the costs of treatment for the intended purpose and direction of individual expenditures. Calculate the following costs: transport expenses; payments on social needs; costs of labour; depreciation of fixed assets; expenses on repair of the equipment; cost for rent and maintenance of premises, equipment, vehicles, and equipment; expenses for payment of percent for using credit funds; the cost of fuel, electricity, gas for industrial purposes; advertising costs; costs for storage, posertive, handling and packaging of the goods; the cost of purchasing the containers; land tax; farm payments and other expenses.
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Calculate the sum of total costs. To do this, fold the fixed and variable costs. Fixed costs include costs that are independent in the short term of the number of produced products. In turn, variable costs are those costs that depend on production volumes.
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Please note that the fixed costs consist of alternative value of a share of the financial capital invested in the equipment of the company. The magnitude of this value is equal to the amount of money for which the founders of the company would be able to sell this equipment, and the profits to invest in more attractive business investment. To them take all the costs for raw materials and energy. The largest part of variable costs, as a rule, will account for the cost of materials.
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Determine the level of costs of circulation, which is equal to the sum of the costs of the appeal to the size of turnover expressed in percent. This indicator will allow you to characterize the performance of the company. The better the company, the lower should be the level of costs involved in the appeal.
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