Update Rate Incidence in Investment Projects of the Cuban Food Production Sector

Abstract

Objective: To design a procedure for selection of the update rate for financial evaluation of investment projects in the food-producing sector, which will enable quantification of expected performance, and the risk assumed by stockholders or investors.

Methods: The model of capital asset valuation, adapted to the Cuban reality.

Results: The estimation of expected risks of investments is made easier, considering the national and international organizational scenarios.

Conclusions: A new financial tool can be used to prevent improvisations during project financial evaluations.