Research On Investment Return And Risk Control Of LB Corporation Floriculture Park Project

As one of the three essential driving forces of economic growth,which is known as the'troika',investment has a self-evident effect.While project investment,the primary type of investment,is a fundamental precondition of economic development.Since it is a necessity to research the economical rationality and possibility of risk control over any project investment,investors and related personnel have to do long-term study on the subject that is how to conduct scientific evaluation and proper decision making on investment projects.At the same time,as domestic economic development into new normal.State-owned enterprise facing more complicated environment now confronts practical problems in the new trend,such as how to positively adjust to fierce market competition that becomes worse day by day,and to fulfill industrial upgrading and diversification by using its advantages.This article based on the background of this constructing project,from the view of investor LB Corporation,through market survey together with investment environment analysis,analyzes its internal and external investment environment and market competition environment via 'SWOT Analysis' and 'Five Forces Model Analysis' respectively,thus define the development strategy of the project.Secondly the article forecasts revenue and estimates expense on the basis of the project's investment and financing plan,also has evaluated investment return and demonstrated its economic feasibility by static economic analysis and dynamic economic analysis separately.Finally,the article focus on risk control study of the project,and practices quantitative estimation of investment risk on the project by sensitivity analysis and probability analysis,then distinguishes risk factors that may occur in construction and operation and evaluates their risk degree by expert investigation approach while putting forward countermeasures for prevention and solution.As mentioned above,the article has come to a conclusion that this project is economic feasible and risk controllable.At the same time,this article offers decision making reference for similar investment projects about analysis or study of investment return and risk control.