DISTRIBUTION OF ADDITIONAL COST AND PROFIT AS THE DECISION-MAKING FACTOR FOR THE INVESTMENT PROJECT

Abstract

The article offers original approach to evaluation of an investment project from point of forming the final price of a product created in result of the project. Value-added is formed on one side by each participant of the product creation process and on the other side belonging to some of the production factors. Understanding value-added enables deeper analysis of price structure, revealing opportunities for managing pricing. Understanding of the price structure statically and in dynamics allows more flexible define pricing therefore influencing sales, revenue and income. The research presents the scheme and algorithm for pricing structure analysis, which can be performed on the stage of investment project development as well as on any of the execution stages.

Keywords

• investment project
• value-added
• fair value added
• pricing
• price
• income distribution
• chain of participants
• production factors
• evaluation effectiveness