Case Study Of Financial Feasibility Analysis Of W Real Estate Company H Project

China's economic development has undergone enormous changes in the past 30 years since reform and opening up.Real estate,a pillar industry of the national economy,relying on China's economic development environment,not only play a carrier rolein the socio-economic system,but alsobring high value-added for the national economy.The State Administration of Taxation issued a relevant notice,clearly pointing out that from May 1,2016,VAT replaces the business tax in the nationwide,which means industry that has been collected business tax,including construction,life services,real estate,finance,will levy all value-added tax,this policy will directly affect the real estate industry.In this context,how to save cash flow,how to control the project's investment risk and financial risk,W real estate company's investment decision-making analysis is essential,especially the financial feasibility of the project.Investment analysis has become thebasis for decision making.In this paper,by using of case analysis,specifically for the new real estate investment projects(H project)financial feasibility analysis carried out a more detailed and detailed case study.First,the present situation and problems of investment management of W real estate company are described and summarized.Then,the financial feasibility of H project is analyzed systematically from the aspects of project technical index,investment estimation,fund source,financial evaluation and tax burden.It shows that the net present value of the project is 89.43 million yuan,and the return rate is 51.73%after the project tax.The net present value of capital after tax is 81.62 million yuan.The implied return rate after tax is 76.3%,indicating that the H project can bring positive cash flow to the enterprise throughout the calculation period,and the project's own return rate is much higher than the capital cost rate.At the same time,the H project has some financing risk,such as single financing mode,too dependent on the pre-sale income and other aspects of the financial risk.Finally,appropriate choice and prevention measures are putted forward:increasing follow-up funding sources,expanding the target customer base,making full use of the deductibility of input tax and so on.Therefore,if the real estate company can reasonably control the financial risk and tax risk,the investment project is financially feasible.