Study On Financial Evaluation Of Deli Company Garbage Exudation Disposal & Production Project

In China, with the establishment and perfect of socialist market economy system, investment activities could be seen in all social economic aspects. Among all management processes of investment projects, the preliminary investment period is of utmost important. The preliminary decision-making is the key point and the main base for decision-making is the feasibility study on projects. The financial evaluation on the investment project is a necessary process for decision- making. Only those projects economically feasible can be taken into consideration. The processing unit for garbage exudation developed by Deli Company has passed appraisal of environmental protection authorities and is granted with Provincial Third Glass Reward on Science & Technology Progress. In order to transfer and apply this achievement into the environment protection industry as soon as possible, the company prepares to put the processing unit for garbage exudation into scale production after detailed market research. For the purpose of ensuring the correctness of investment decision, the author analyzes this project economically by making use of modern management theories and methods, e.g., engineering economics, project management, financial management.In analyzing economic feasibility of this project, the author is mainly based on evaluation index provided by " Economic Evaluation Methods and Parameters of Construction Projects " (Version II) issued by the original State Planning Commission and other authorities in 1993. Firstly, the author has an introduction on research background, thoughts, methods and structural arrangement of this thesis, based on current research status both at home and abroad. Secondly, the author analyzes current developing status of garbage exudation processing technology and developing status of garbage exudation processing unit both at home and abroad, in accordance with financial evaluation contents, procedures and methods of China. Finally, in accordance with requirements of relevant national authorities to feasibility analysis on investment projects, the author has calculations on many indexes of this project and finds some shortages, e.g. depreciation method of fixed assets, confirmation of base earnings ratio, calculation of dynamic investment recovery method, time value of money, inflation influences on financial evaluation indexes, etc. The author also puts forward some improvement measures and suggestions, and gives a definite conclusion to economic evaluation of this project.Key functions of this thesis are as follows: to analyze relevant financial forecast, decision-making methods and indexes and to revise selections of some evaluation indexes and parameters influencing financial evaluation results, through financial evaluation on scale production of the garbage exudation processing unit of Deli Company, for the purpose of guaranteeing better scientificness and correctness of the evaluation result concerning this project. So, it may have certain reference functions to investment projects of other companies.