Research On Financial Evaluation Criteria And Depreciation Of Infrasttructure Project And Program Design

Of an important part of feasibility study, the financial evaluation of infrastructure project is the important means that makes decisions whether the project is scientific or not. At present, the guidelines of financial evaluation of a project are mainly based on the Methodology and Parameter of Economic Evaluation of a Project (MPEAP), the Second Edition issued in 1993 by State Planning Commission and Ministry of Construction. We do find that there are many problems of MPEAP when it is applied, such as inconsistent judgment of different criteria, the sophisticated evaluation criteria to a set of mutually exclusive projects. Therefore, MPEAP provides little comments about the major factors such as inflation and depreciation, which influences the results of financial evaluation. Based on much practice and data of collection, this paper gives study to financial evaluation criteria and the methods of depreciation, applying the new evaluation criteria by making the program with VB.About the evaluation of a set of mutually exclusive projects, this paper proposes a new evaluation criterion - Combined Internal Rate of Return, which is proved by deducing formulas. At the same time, it gives more study to the financial evaluation criteria under inflation. Some suggestions and ways are advanced. A new method of depreciation-Combined method of depreciation on time, is put forward in this paper, which bases on that the depreciation combined time can really reflect the financial run of the enterprise dynamically. About design of the program, a lot of work is done on practicality, integrity and network.At last, the new evaluation criterion and the program are tested by a real case. The result shows that they have systematicness, flexibility, succinctly and practicality. They are useful to financial evaluation of other infrastructure projects.