American Journal of Economics, Finance and Management
Articles Information
American Journal of Economics, Finance and Management, Vol.1, No.4, Aug. 2015, Pub. Date: May 28, 2015
Whether It is Possible to Increase of the Investment Efficiency, Increasing Tax on Profit Rate
Pages: 250-270 Views: 3879 Downloads: 767
Authors
[01] P. N. Brusov, Applied Mathematics Department, Financial University under the Government of Russian Federation, Moscow, Russia.
[02] T. V. Filatova, GMM Faculty, Financial University under the Government of Russian Federation, Moscow, Russia.
[03] N. P. Orekhova, Investment and Taxation Laboratory, Research Consortium of Universities of the South of Russia; High School of Business, Southern Federal University, Rostov-on-Don, Russia.
[04] I. K. Shevchenko, Vice-Rector for Research and Innovation Projects, Southern Federal University, Rostov-on-Don, Russia.
[05] A. Y. Arkhipov, High School of Business, Southern Federal University, Rostov-on-Don, Russia.
[06] V. L. Kulik, Management Department, Financial University under the Government of Russian Federation, Moscow, Russia.
Abstract
Within modern theory of capital cost and capital structure by Brusov-Filatova-Orekhova (BFO) theory and created within this theory modern investment models influence of growth of tax on profit rate on the efficiency of the investment is investigated. It has been shown that for long term investment projects, as well as for arbitrary duration projects the growth of tax on profit rate changes the nature of the NPV dependence on leverage at some value t*: there is a transition from diminishing function NPV(L) when t
Keywords
Tax on Profit Rate, Investment Projects with Arbitrary Duration, Effectiveness Of Investment Project, Brusov-Filatova-Orekhova (BFO Theory)
References
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