Research On The Calculation Of Investment Income Of Own Capital Of Real Estate Development Project

With the rapid development of the 21 st century,with the rapid development of economic globalization,China has gradually developed into the second largest economy in the world,and the process of urbanization in China has gradually accelerated,thus providing a good opportunity for the rapid development of real estate in China.In 2008,the financial storm swept the world,and the real estate field was also deeply affected.The most obvious is that the development cost gradually increased,and the profit of developers became smaller.Therefore,for developers,how to obtain the maximum economic benefits through some investment decision-making means,how to determine the proportion of their own funds and borrowed funds,how to minimize the investment risk,how to determine the optimal investment scale,and how to generate the maximum investment income have become the most urgent task for each developer.The real estate industry plays an important role in the rapid development of China's economy.It also becomes an important industry of the national economy,closely related to each industry.Real estate,as a real form of investment,has systematic risks such as inflation,interest rate,policy factors,market demand and non systematic risks such as management level,financial status,credit level and decision-making ability.Its future is full of uncertainty.Developers also have the right to choose future development projects.Therefore,we carry out real option theory to develop real estate The research on the calculation of project investment income has practical significance.Combining the theory of real option with the theory of real estate investment,we use B-S Option Value Formula to estimate the value of real estate development projects,which lays a solid foundation for investment decisions.After calculating and making the investment decision,we can estimate and analyze the relevant parameters of the development project investment,accurately estimate the cash inflow and cash outflow interval of the development project,calculate the value volatility of the development project according to the existing price index,and measure the risk of the development project.Besides,the investment risk of the enterprise is reduced and the application value of decision is improved.Based on the estimation and analysis of some investment parameters of the development project,the random function method is used to simulate the value of cash inflow and cash outflow of the development project by using the rand function in Excel,and the sum is taken as the independent variable.The net present value and option value formula are used for 100 times(generally more than 50 times)of simulation calculation,and the maximum value is found out.The corresponding cash outflow value is the optimal solution of this paper.The purpose is to solve the problem of allocation of self owned funds and borrowed funds in the process of investment by using the real option theory and the method of random function.Moreover,it's vital to find the optimal investment scale of real estate development projects.