Financial Evaluation Research On Ceramsite Filter Material Project Of LY Company

The result of financial evaluation is a very crucial to decide whether a project is feasible. However, there are still lots of problems in project decision-making with the high failure rate of investment. Therefore, it is important that strengthen study of financial evaluation in theoretical and practical and reduce the failure rate of investment.Economic evaluation of the project is divided into two levels, financial evaluation and national economic evaluation. This paper makes an economic evaluation from the level of financial evaluation to the project. Besides, it also makes the Uncertainty analysis to provide a basis for decision making.Firstly, this paper makes a brief introduction to the background of the project, and then, it drew a conclusion of viable in market by target market selection and evaluation, PEST analysis of the macro environment, estimating the capacity of the target market, Michael Porter’s Five Forces Model analysis of industry competition and the marketing ability that the project; as for the financial evaluation, effectiveness and costs of the project were analyzed and the project’s profitability, solvency and viability were also evaluated.Finally, this paper makes the uncertainty analysis from the project breakeven analysis, sensitivity analysis and risk analysis and find price is the most sensitive elements of the project.