Research On The Profitability And Risk Of The CD Expressway Investment

The development of highway is of important significance in the development of economy and society at the present stage of our country. As the amount of investment of highways and other infrastructure is often very large, there is increasing financial pressure if it relies solely on the government's investment, but the demand for social investment funds is very strong. As a result, highways and other infrastructure facilities have got rapid development in recent years, and this shows it has broad prospects. However, with the characteristics of the large amount of investment and the long, slow-return, the investment requirements more scientific and careful decision-making in practice and needs a fully understanding of the various internal and external factors.Based on the discussion of the actual investment cases, the author began with the analysis the income and the cost, then concretely analyzed the factors such as road traffic (the initial value, growth and value saturated), fees, construction costs, operating costs, interest rates, tax data as well as politics, economy, technology. First, based on the field survey data and related information, the author predicted the project's total investment and income, and then, using such economic indicators, profitability and debt financial indicators as the static period, the net present value, internal rate of return, the author did an analyze and economic evaluation. Finally, using sensitivity analysis and risk management tools, the author briefly discussed uncertainty risks of the project. During the analysis of the project, the author discussed the effects that the main factors have on in the project implementation cycle, discussed the issues as investment, management, decision-making and implementation under the current investment environment to help improve the analysis of road investment project, improve investment returns and control investment risk.Having talked about the analysis of investment projects and implementation of a large number of cases at home and abroad, the author pointed out the main advantage of the highway project investment lies the simplicity and stability of income, the adequacy of cash flow, the possible control of risk and the maturity of management, and so on, moreover, because of lots of support for the policy and preferential terms at this stage, the highway project investment has been concerned about by investors. On the other hand, its large investment and long, slow-return make investment more uncertain and risky; meanwhile, as a public good, investors can not fully pursue maximize economic interests, they also need to take care of social interests of all parties concerned. Especially in our country, due to the lack of the prefecture of policies and regulations at this stage, fee pricing power, operating life, and so on did not achieve full market, the investors face more challenges.