INVESTMENT ACTIVITIESKey Points legislative basis for regulating classficatlon of corporate life cycle of investment evaluation of economic the investment activity ofa investment decisions projects efficiency of investment corporation projectsIn Russia, the regulatory framework for the LEGISLATIVE investment activities of companies is the BASIS Federal law N39 Main theses of the law = it defines the concept of investment ~ it defines the parties to the investment process, thelr rights and A invesiment is a set tem aut with ‘he goal of eneating Income ot appreciation. ‘Appreciation refers to an increase in the valu of an ase over time, When an indivi obligations -it defines the role ofthe state inthe investment activities of corporations purchases a good a an investment, the invents otto consume the good but rather to seein the fue to crete west,CLASSIFICATION Depending on the classification criteria, several types of investments can be distinguished: REAL INVESTMENTS including capital expenditures FINANCIAL INVESTMENTS Including thesaurus investmentsCASH FLOWS Initial and following Operating cash flow: investments, Operating profit D&A.SCHEMES OF CASH FLOWS 1. step by step ocr 2. at the same time Inv ocr 3. with a gap ine ocrCOMMON APPROACH ‘We have 2 metrics and they are: return on investments (ROD which is the ratio between free cash flow (FCF) from the project and investments and payback period which isthe ratio between intial investments andl free cash flow (FCF) from the project. So, we can see that these two metrics are mathematically inverse to each other.COMPLEX APPROACH Tce md (roi na NPV or (NPV +Disc Inv) Discounted Investments Disc Inv IRR = d when NPV =0 IRR PI