Reacher Calculation Methods Of Rate Of Return And Calculation Period In Construction Project Finance Assesement

Construction project evaluation is the most important basis in supporting decision-making, and a scientific evaluation of the construction project establishes on a scientific evaluation indicators system and the calculation of specific indicators. In order to regulate and guide the scientific indicators and indicators calculation, Chinese government gives relevant requirements and regulations on to the construction project financial evaluation system and indicators calculation. However, in practice, we found that the standard of construction project financial evaluation indicators system has been formed, but the fuzzy still exists in selecting parameters with specific indicators calculation. This directly affects the relevant financial indicators calculation, and indirectly led to the distortion of financial evaluation. Based on this conception, this paper attempts to research projects financial evaluation parameters from the angles of both theory and practice. In this paper, the first part guide to the basic object of the project evaluation, financial evaluation of which need to study---construction project financial evaluation parameters. The second part researches the four identified methods of financial base yield which is one of the construction project financial evaluation parameters. Analysis the principle of the capital asset pricing model and using the methods determine relevant parameters; meanwhile discuss applicability of using the Capital Asset Pricing Model in China. Next we analysis of weighted average cost of capital, focus on the relationship between the cost of asset and the cost of capital, sweeping obstacles of using weighted average cost of capital. Through the discussion of the relevant parameters, we find the targeted method of calculation. Finally we analysis of two ways of determining these main parameters: Delphi method and typical simulation project, and noted that the Delphi method can be used to alternate typical simulation project and as to Delphi method we focuses on its practical application. In the final of this part, we sort the four parameters according to the principle of our approach. The third part we discuss the building project calculation period of the construction project financial evaluation parameters by analysis the identification of construction period and operating period, focusing on the period of operation and relevant factors in this determination. Finally, we briefly discuss the interaction between parameters.Through a lot of literature study and practice discussion, we study the theoretical methods and take actual presentation to these two parameters. Helping practitioners clarified the thinking in determinate parameters and providing a practical operational methodology. Construction projects making theoretical support to financial indicators and improving the relevance of the construction project decision-making information.