Study On Financial Evaluation Model Of Bi Biomass Power Plant

This paper focuses on the research of Financial Evaluation Model of BiomassElectricity Plant A, which is a more completed and flexible financial evaluationsystem about the biomass electricity generation industry. The Model is combined withthe latest national financial and taxation policy and adopts proper financial evaluationsystem. It can be used to build a kind of relationship between the related basic data ofproject operation and conclusion data of financial evaluation reports. With the datastatistic advantages of Microsoft Excel, the model is expected to be flexible andwell-rounded. This model is able to confirm the feasibility of investment andoperating decisions through analyzing the financial data of project’s survival,profitability and solvency, and finally, it reflects the consistent degree betweeninvestment expectations and project results. The practice has proved that the model isan important tool for investment and operation decisions. Meanwhile, it also can beused as the key of project investment and operation risk controlling.By researching the emergence and developing process of several financialevaluation theories, this paper has introduced the latest research theory which is quiteadvanced in both China and abroad. It also involved the basic methods and theories offinancial evaluation in this paper. Meanwhile, the significance of investment andoperation decisions about biomass electricity project was revealed in this paper.According to the result of the research, we can reach the result that by testing thefinancial evaluation data of turnover rate, principal operation profit and debt ratio, thefinancial evaluation models will reflect some of biomass electricity project’sinvestment and operation achievements comprehensively, predigest stockholder’sdecision-making procedures and provide the relative simply evaluation method abouttheir investment and operation decisions. In a word, the findings of the paper canprovide the valuable reference for the investment and operation decisions of biomasselectricity project. In this way, the shareholder’s investment interests can bemaintained.