Economic and financial analysis of investments in information security

The paper analyzes information security investments from both economic and financial points of view. Authors research special characteristics of information security investments and the difficulties which appear during the determination of input parameters of the economic analysis. Challenges in application of internal rate of return method are also analyzed. The constructed model of cash flow analysis of information security solution investments shows the feasibility of calculating the net present value, internal rate of return and the return on capital when using such an approach.