Study On ZS Bank's Investment Evaluation About The Project Of SFH Heat-electricity

With the rapid development of economy, bank is very important in the project financing. Banks put great emphasis on the methods of the investment decision. Traditional valuation tools are the major approaches in the investment decisions. For example, the net present value (NPV). Bank constructs the professional system of the project loan evaluation. It not only appraises the necessity of the project, but also can help investor to forecast the economic profit of projects. It can ensure the capital against the loss. At the same time, it improves the quality of the bank's capital assets. On the other band it effectively avoids and controls the project loan risk.The thesis employs quantitative methods, supported by the evaluation system of the project investment. ZS Bank finally proposes the investment decision. The thesis is consisted of the following given parts: Part One: This chapter firstly describes the background, and intentions of the subject, then followed with the domestic and international actuality. At the same time, brings forward textual research methods. Part Two: This chapter introduces related theories. Part Three: This chapter introduces and evaluates the general situation of the SFH Heat-Electricity Project. It comprehensively evaluates the following four facts:the general situation of the project, the borrower, the financing, the market and the credit frame of the project. Part Four: This chapter analyzes the financial affairs of the SFH Heat-Electricity Project, including the profitability and payment of debts ability of the project. Part Five: This chapter analyzes the risks of the SFH Heat-Electricity Project, including Credit Ratinge and Loss Given Defqult. educes the estimate of the project. At last, it makes corresponding investment decision.In this thesis, ZS bank estimates the SFH Heat-Electricity Project from the following aspects: the profit ability, the repayment ability and the risk. It analyzes many economic indicators. For example, the internal rate of return, the repayment period and Loss Given Defqult etc. The evaluation of the SFH Heat-Electricity Project provides the objective information and scientific foundation for the ZS bank. ZS bank makes the investment decision and brings up the measures to defend the project loan risk and improve controlling capability.