Financial Feasibility Of Guohua Ruifeng (Zhanhua) Wind Power Project

As the establishment, development and improvement of China's socialist market economy, the construction of modern enterprise system becomes deepening, the project financial analysis is great significance on improving the scientific nature of decision-making, is an important basis work on scientific analysis of internal and external environmental, the rational use of resources, scientific investment and financing arrangements, and increase the profitability and competitiveness.As wind is the clean energy resources and the major source of renewable energy, wind power is in line with national industry plan and environmental protection policies, is the industry, which the country strongly encouraged. Guohua Ruifeng (Zhanhua) wind power project is a coastal power project, which based on "Shandong power grid planning in 2010 and the 11th Five-Year system design", using the advanced technology of international and domestic currently. The project which integrates the traditional energy and renewable energy, both benefit the ecological resources protection of the Yellow River delta plain, and also along the Yellow River culture, characteristics of tourism with the local planning and development of the next in line.In this paper, in accordance with the norms of project management, we analyze the financial feasibility of the investment project using engineering economic analysis method, to give reference on the decision-making for enterprise. Based on construction condition of project, market competitiveness, productivity and so on, using the method of qualitative analysis and quantitative analysis, static analysis and dynamic analysis, we focus on analyzing the estimation of investment and financing, the cost estimates, profitability, solvency etc. to conduct in-depth analysis of the basic preparation of project financial statements. We also give the conclusion on financial feasibility, based on the calculation of the payback period, net present value, the financial internal rate of return, such as breakeven point for the financial indicators.Finally, we analyze the uncertainty and risk of the project using break-even analysis and sensitivity analysis method to enhance the reliability of financial evaluation and decision-making more scientific. The results prove that Guohua Ruifeng (Zhanhua) wind power project can take back the investment within the scheduled time and the benefits on economic and social are enormous.