Study On Financial Evaluation Of HN Power Plant Condensable Gas Heating Unit Renovation Project In D City

Under the current taxation system and the price system conditions, from a project finance perspective, the project financial evaluation calculate the project's financial profitability and liquidity, thus determine the financial viability of the project. It will establish a scientific mechanism to ensure the accuracy of decision-making development projects and help reduce the project profits and cash flows to maintain the stability of production and operation. Also it will improve the economic benefits of the project. In order to alleviate the pressure of heating, efficient use of resources for maximum heating capacity, HN heating plant in D city proposed the condensable gas heating unit renovation project,determined to transform Unit 2 and 3. This project can increase the heating capacity of D city, meet the heating needs of the city. In order to ensure the accuracy and scientific of the investment decisions, this paper studied the financial evaluation of this project by integrating the modern theory of financial evaluation system closely with the actual project.Firstly, the paper described the project's background and technology, analyzed the necessity of the construction of the project, and predicted its market prospects. On this basis, in order to provide fully preparation, this paper estimated the investment of this project, deeply analyzed the cost and income that this project could bring, drew up the relevant reports that the financial evaluation of this project needed, including statement, cash flow statement, etc.Then, combined with the existing project financial evaluation index system, using static analysis and dynamic analysis are combined, and a dynamic analysis based methods, this paper selected a number of indicators that can reflect the profitability and solvency of this project and through calculation and analysis of these indicators to study the project profitability and solvency. The results showed that the project had strong profitability and solvency. It was financially feasible.Finally, this paper studied the degree of the risk of the project and the ability to resist risks through uncertainty analysis, including the break-even analysis and sensitivity analysis. The results showed that the project could withstand greater changes in market demand and higher risk products price cut and the overall risk was on a lesser extent, with a strong anti-risk ability. The project is most sensitive to changes in selling income, followed by variable costs changes, changes in investment. This requires the HN power plant in D city strengthen the market forecast in order to reduce the influence of the change of the heating income and improve costs management.On this basis, this paper analyzed the risk that the project faced, including nature risk, policy risk, financial risk, technical risk, investment decisions and management risk, putted forward corresponding countermeasures and suggestions, so that provide a scientific basis to the project management.This study has kind of direction, predictability and innovation and not only can provide scientific basis for investment decisions but is valuable for the construction and management of this project. This article also hopes to provide reference for the future research.