Project Assessment Of Qingdao Traditional Customs Museum

The aim of this work is to assess the feasibility of Qingdao traditional customs museum project. The methodologies and procedures of project assessment are introduced and applied. This work illustrates the use of that assessment procedure on Qingdao traditional customs museum as a realistic case study. This work will provide the guidance and reference for the assessment of similar projects, and it has important practical significance.Using qualitative methods, project construction alternatives of Qingdao traditional customs museum are analyzed and assessed firstly. According to the construction conditions, the site selection and construction project options are proposed, as well as the related supporting facilities. The project operation environment is evaluated. Geo-economic environment, market demand environment, and internal environment assessment are focused on.Using quantitative methods, the financial assessment of this project is conducted. Investment estimation, financial evaluation, and economic profit evaluation is conducted, respectively. Total investment in the construction and operation period of the project is estimated. And according to the scheduled plan and capital source, the disbursement schedule is made out. The results of the financial assessment showed that the total annual cost is 1231.9 thousands Yuan, the annual earning is 2880 thousands Yuan, the annual tax is 388 thousands Yuan, and the after-tax profit is 1228 thousands Yuan. The result of economic profit evaluation showed that the entire investment project before-tax, after-tax financial internal return rates are all over 12% of the average rate of return, the project could still be profitable.Finally, the uncertainty and risk of this project are analyzed. According to the break even analysis, the first year of the break-even point is 38.82% after the project reached designed capacity. Assumed that earning on the project operation and construction investment are the variations, which impact on the financial internal rate of return, payback period and other indicators, sensitivity analysis is carried out. The result showed that the earning on the project operation is more sensitive.