Rongcheng - Wendeng Highway Project Financial Feasibility Study

Project financial feasibility was based on the existing taxation system and the price system in our country. Analysis and calculation of direct financial costs and benefits of the project, preparation of financial statements, evaluation of project profitability, liquidity and financial position of foreign exchange balance was to determine the financial viability of the project. As the core content of a project feasibility study and engineering assessment of the project ,it is very essential to improve the scientificity of enterprise project investment decision-making. Its evaluation findings provides an important basis for decision making of the project .Rong-Wen National Highway project is the important component of the Central Cross-Island Highway Network Planning 4 RongCheng - Wuhai Line and the Shandong Provincial Expressway Net. The construction of its National Highway and Shandong Provincial Expressway is of great significance to speed up network, improve and optimize the layout of the regional road network and improve traffic conditions. In accordance with the norms of project management, this paper uses the theoretical methods of engineering economic analysis and financial feasibility analysis to provide reference to investment decisions for the enterprise.On the basis of domestic and abroad projects research, the theory of,financial assessment ,the paper goes deep into discussions on assessment method of highway construction projects Rong-Wen .Combination of qualitative and quantitative analysis ,static and dynamic analysis methods, on the basis of the project background, project regional socio-economic, the status qu of transportation and development, traffic analysis and prediction, construction programs ,this paper focuses on analyzing the estimation of its investment and financing, cost and future earnings, the preparation of the project's basic financial statements.By the way of calculation of the investment payback period, net present value, the financial internal rate of return and other relevant financial indicators ,this paper gives a financial evaluation.Finally, break-even analysis and sensitivity analysis on project uncertainties and risks was used to improve the reliability of project financial evaluation and scientificity of decision-making . The results show that Rong-Wen highway construction project at the scheduled time can recover costs and generate considerable economic benefits and social benefits. In view of financial indicators , the project is positively feasible.