Financial Analysis On The Project Of Investment In Grassland Construction

Our government strengthened fund investment and management on grassland construction in order to restrain the deterioration and regain grassland vegetation. Accompanied by national, enterprise, and personal investment enhancement on grassland construction project on and on, analysis on feasibility of investment project scientifically has important practical impact and leading significance on decision correctly, improving investment beneficial, insuring the success of grassland construction project and sustainable development of cattle breeding industry.Owe to peculiarity and product character of grassland construction investment project, using common financial content and methods which are used to analyze agricultural, even industrial project has difficulties in predicting investment beneficial of grassland construction investment project correctly.This paper takes the example for Hulunbeier League, uses qualitative and quantitative methods, probes the following problems: estimation and disposal on investment cost and running expenses of grassland construction investment project estimation of project earnings principles of project borrowings and appliances of financial appraisal indexes and financial statements. Based on the above research, conclusions are as following: if previous project period is longer than that of milti-year increment herbage, fixed investment must be considered which is resulted from renewed herbage when cost is estimated; changes of period of operating cost resulted from renewed herbage and output changes must be considered when cost being estimated; periodical output changes of herbage not only lead to cost changes, but also changes in project incremental income and relative cost indirectly; devising suitable project borrowings is beneficial to favorable implementation on every project; aiming for the characters of grassland construction investment project, selecting practicable financial appraisal statements and financial indexes can make calculating of financial beneficial of grassland construction project scientifically.