Financial Evaluation On General Clean Fuel Production Base Construction Project Of M City

Under the current taxation system and the price system conditions, from a project finance perspective, the project financial evaluation calculate the project's financial profitability and liquidity, thus determine the financial viability of the project. As the real estate development has spatial fixity, investment in large-scale, long development cycle, so, in terms of more general projects, the financial evaluation of real estate development project has more significance.To develop alternatives to oil and correspond national "energy saving" industrial policy, WD Energy Technology Co., Ltd. M City proposed the construction of production base of general-purpose clean fuel project. In order to ensure the accuracy and scientific of the investment decisions, this paper studied the financial evaluation of this project by integrating the modern theory of financial evaluation system closely with the actual project.Firstly, the paper described the project's background and technology, product, production process, and analyzed the necessity of the construction of the project, predicted its market prospects. On this basis, in order to provide fully preparation, this paper estimated the data that the financial evaluation of the project needed, including fixed assets investment, liquidity, total investment and the sources of funds, cost, income and taxes; drew up the relevant reports that the financial evaluation of this project needed, including income statement, cash flow statement, balance sheet, etc.Then, combined with the existing project financial evaluation index system, using static analysis and dynamic analysis are combined, and a dynamic analysis based methods, this paper selected a number of indicators that can reflect the profitability and solvency of this project and through calculation and analysis of these indicators to study the project profitability and solvency. The results showed that the project had strong profitability and solvency. It was financially feasible.Finally, this paper studied the degree of the risk of the project and the ability to resist risks through uncertainty analysis, which the break-even analysis and sensitivity analysis included. The results showed that the project could withstand greater changes in market demand and higher risk products price cut and the overall risk was on a lesser extent, with a strong anti-risk ability. The project is most sensitive to changes in selling prices, followed by variable costs Changes, changes in investment again. On this basis, this paper analyzed the risk that the project faced, including investment decisions risk, market risk, technical risk, financial and risk management and other in-depth analysis, putted forward corresponding countermeasures and suggestions, so that provide a scientific basis to the project management.