The economic effect of the implementation of any event, this is the effect of investment/ investments, expressed by such integral indicators as project payback, net discounted income, internal rate of return and profitability index investments.
To calculate them, it is necessary to correctly derive the basis of this economic return from the beginning - net income, which is the combined result of the financial and economic activities of the entire company where this event is implemented, and specifically from something.
The economic calculation when assessing the effect of the implementation of any implemented event should always be made based on the difference in forecasts. I.e., based on a comparison of all financial and economic indicators of the campaign before the implementation of the event and after throughout the entire calculation horizon. Only, of course, if the project is not implemented from scratch, in a "clean field". That is, there is no initial base on which it is being implemented.
The difference does not mean comparing the prospective values of the company (taking into account the implementation of the event) with the values of its base period (the fact of the last reporting year/month of the organization). Because the base period cannot take into account many forecast factors that may affect its financial and economic activities, even without taking into account the implementation of the project in the future. For example, depreciation of current fixed assets, the interest rate on money, the volume of production of already mastered types of products, etc.
That is, at the beginning, the economy of the organization is calculated within the entire time horizon in the condition that the event is not feasible, and after that in the conditions of its implementation (due to the imposition of investment factors on the current model). And such an approach is fundamentally important for the correct and correct assessment of investments.
The calculation algorithm should provide for the output of this digital delta throughout the entire forecast period. Based on this difference, the total net income of the company from invested funds (investments) is determined for each time period.
For example, the company's forecast, taking into account investment injections, is the implementation of an event
An incorrectly calculated effect is the difference between the predicted values and the fact
A correctly calculated effect is the difference between forecast development scenarios (with and without a project)
