Research On Real Estate Project Cash Flowing Prizing Model

Cash Flow is all kind of the fund which the enterprise can use to pay immediately, which to the enterprise as the blood to man. Good Cash Flow can make the enterprise grow healthy, but bad Cash Flow will make the enterprise be in bankrupt though its business is gainful.Modern Poilio theory researches on how to get the least risk on some gainful level. It main contains Capital Asset Prizing Model and Asset Prizing Model and e.t.c. Option Pricing Theory is one of the most important achievements in the field of modem economics, which mainly discusses the method of confirming option value. As a realistic selection right, real option is widely used in investment decision, Mergers and Acquisitions and project evaluation. Real option has much important value for being applicable to investment decision of the items that have long term, high risk and huge sum.At the beginning, this paper introduces the development of China's real estate. By using internal and external research achievements for reference, this paper provides an insight into the application of OPT in real estate project development investment decision. To connect theory with practice, this paper gives an example about the using of CFPM.As far as real estate project development investment decision is concerned, there are many uncertain factors in it. On the basis of reserving the reasonable part of the traditional method, CFPM takes uncertainty account, and it puts forward a new method estate investment and flexibility for investors.