The Economic Evaluation And Investment Analysis Of Pazhou PZBG Commercial Complex Project

The Pazhou PZBG project studied in this article is a commercial complex project that isconsisted of hotel, apartment, office, and shopping arcade. It is commonly known thatcommercial property project is prone to has higher investment risk due to its features such ashuge investment, long construction period, big market risk and complex constructiontechniques, therefore it is crucial to implement feasibility study and analysis on the project toreduce risk. Economic evaluation is to implement a systematic research on the constructionalproject in question from the aspects of financial and nationally economic evaluation, bymeans of conducting relevant analysis and calculation on economic index such as net presentvalue, investment payback period and internal rate of return to deduce a scientific andcomprehensive evaluation, with the aim of providing important rationale for makinginvestment decision. Economic evaluation level is a direct determinant for the project’sdecision making result, therefore the economic evaluation research is the indispensablecontent prior to project investment and construction.At present the project economic evaluation centers around industrial production and realestate development, with relatively fewer analyses on commercial complex project’scomprehensive economic evaluation. Most analyses are to perform economic evaluation onsales only, lacking the economic evaluation model that combines the commercial real estatesales with owned hotel property analysis. To tackle this issue, this article is going toimplement a scientific planning on PZBG based on the project’s actual conditions. The firstapproach is to apply PESTEL analytical methods to analyze the environment and market ofPZBG, clarifying the project’s constructional planning; second approach is to apply theanalytical theory and methodology on financial evaluation, in order to perform the economicevaluation of PZBG’s project sales as well as owned property model, analyzing evaluationindex such as project’s net present value, investment payback period and internal rate ofreturn to get a comprehensive appraisal of PZBG’s profitability and debt paying ability; thirdapproach is to conduct break-even analysis, sensibility analysis and probability analysis, forpurpose of demonstrating the influence of uncertainty to PZBG, the probability of itsoccurring, and the project’s ability of enduring risk. Demonstrating project’s economicbenefits and anti-risk ability, establishing an economic evaluation model that combines saleswith owned hotel property analysis, is a functional extension of economic evaluation analysisfocused sheer on sales, strengthening the comprehensiveness and applicability of research, so as to provide theoretical and practicable reference value for the follow-up homogeneousproducts’ economic evaluation research.