Research On Investment Decision Of SC Company

In recent years,China's domestic urbanization process has been speeding up.The rapid expansion of urban construction,and urban population growth.With the development of urbanization around the landfill occupied by lakes or wetlands,reduce the green area,excessive hardening of urban ground and other means of development widely used.The natural water cycle process has been prevented.Eventually resulting in many cities facing different levels of waterlogging threat.Therefore,in order to solve the problem of urban waterlogging and water resources utilization,sponge city project came into being.Getting attentions of investment companies in the field of attention.The sponge city project has the characteristics of long duration of traditional infrastructure projects and huge investment,and its uncertainty and strategy are different from traditional infrastructure projects such as sewage treatment projects,which may lead to the forecasting effect of the project investment and the actual implementation of the results are quite different.By the SC Company's traditional investment decision-making method,the uncertainty of the project had been considered less,the strategic factors of the project also failed to achieve quantitative analysis.In this case,SC company sponge city project investment decision-making will make mistakes.This paper discusses the improvement method of SC company's existing investment decision-making scheme by taking the Guyuan sponge city project,which invested by SC Company as an example.In view of the characteristics of uncertainty and strategic factors in the original investment decision-making scheme,real option and Monte Carlo simulation analysis and other decision-making tools will be used through quantitative analysis techniques to solve the project investment decision-making.In the concrete method,the paper uses the real option method to analyze the strategic value of the project,and calculates the volatility and cumulative probability of the project by Monte Carlo simulation method,and improves the sensitivity analysis process of the project investment.The Guyuan sponge city project investment decision-making framework has been complete,which has a good practical significance and application prospects.At the same time,the investment decisionmaking plan proposed in this paper can also provide reference for the investment decision of the same type of sponge city project in the future,and it will ensure the smooth implementation of other sponge city projects.