Yashin S.N.National Research Lobachevsky State University of Nizhny Novgorod (UNN), Nizhny Novgorod, Russian Federation email@example.com ORCID id: not available
Trifonov Yu.V.National Research Lobachevsky State University of Nizhny Novgorod (UNN), Nizhny Novgorod, Russian Federation firstname.lastname@example.org ORCID id: not available
Koshelev E.V.National Research Lobachevsky State University of Nizhny Novgorod (UNN), Nizhny Novgorod, Russian Federation email@example.com ORCID id: not available
Importance This article explores the problem of choosing the most accurate method for assessing the effect of technological innovation of a company that arises when an analyst faces the challenge of evaluating multiple investments. Objectives The article aims to compare the replacement chain approach and equivalent annual annuity approach (EAA) to evaluate technological innovation. Methods To evaluate the equipment technological modernization project for different planning horizons, we used the replacement chain and equivalent annual annuity approaches. Results The article shows that taking into account the objectives of the investor and the planning horizon, each considered technique carries additional information about the effectiveness of the investment chains. Conclusions and Relevance The assessment of technological innovation cannot be based on a single method of analysis. To make the best decision on replicating technological innovation projects, it is necessary to take into account the specific features of the new equipment operation, especially concerning the planned operating time. The results of the research can help financial analysts and project managers to choose the most advantageous variant of technological innovation of the company.
Keywords: technological innovation, investment chain, equivalent annual annuity, EAA