Research On Industrial Company Renovation And Expansion Project Financial Analysis

Project investment decision is one of the most important parts in modern business administration. Project economic evaluation is of great significance in the investment project feasibility argumentation activities. Among these project evaluation, renovation and expansion project economic evaluation is more complicated than others. Renovation and expansion project economic evaluation has certain special characteristics compared with other types of project evaluation in applied methods, evaluation indicators and cost efficiency identification. There are little specific implementation steps on renovation and expansion project economic evaluation in related literature which is not enough for the standardization between different project evaluations. As the development of financial management theory many new methods are developed in project economic evaluation and analysis which are suitable in practical implementation. And there are many problems in economic evaluation work practically. Among these, inconsistence in method, incomprehensive content and deficiency in depth are main problems.How to overcome these problems and find a proper plan for renovation and expansion project economic evaluation is the main target and writing purpose of this thesis.The research of this thesis is:problem proposal, problem analysis and problem settling. The following aspects are discussed as main research purposes with combination of theoretical and practical ways.Firstly, a general review of technology economy theory and construction project economic evaluation theory are given with the methods, indicators and content of construction project economic evaluation. After that a comparing between the methods of new construction project economic evaluation and renovation and expansion project economic evaluation are illustrated. At this stage, a deep research will be given on EVA and MVA in order to test the suitability of these new methods in renovation and expansion project economic evaluation. Based on that, a summary and analysis on specific methods and potential problems of renovation and expansion project economic evaluation are given. A generally applied renovation and expansion project economic evaluation system are made with related advice. Finally, a case study of L Company’s Titanium dioxide renovation and expansion project will be given with deep economic evaluation analysis on every part and stage of this project based on the system developed in this thesis. This will be helpful in illustrating the practically usefulness of this system developed in this thesis. As a result, this thesis and the system will provide advice and reference for decision makers and those who are involved in similar evaluation work.