Project Evaluation Practice

Author: Zhang Yu
Publisher:
Publish Date: 2004-02-01
Features: How to popularize this discipline to achieve the goal of optimal allocation of social resources, and how to scientifically use this technology in different investors, different investment amounts, and different markets. The author has considered several methods:
First, principle-based, which is a feature of this book.
Second, case-based. The author initially planned to include a few cases, but considering the significant industry differences, targeted cases are necessary for beginners as references. However, it is difficult to provide comprehensive, targeted samples here. For professionals who have mastered the principles, it serves only as a general reference. Therefore, the author suggests compiling a dedicated case collection for this purpose.
Third, software-based. Currently, there are already some good versions available in society. Based on years of practical experience, this book also provides a basic system requirement for this aspect, which is clearly listed in Chapter 13 to address the issue of evaluation speed. The goal is to collect complete and accurate original data and obtain evaluation results in a short time once.
In summary, the most important thing is to gain a deep understanding of the principles through extensive practice. In actual operations, one can then apply them comprehensively and generalize from specific examples.
This book takes the time value of money in financial evaluation as the starting point, analyzes the content of the cash flow statement, calculates the internal rate of return using interpolation, and explains the comparative significance of the internal rate of return and the standard discount rate.
Based on this foundation, it further discusses the calculation of cash flows, the sources of the numbers for each sub-item in the cash flow statement, the compound calculation process, and the principles of the construction period, production period, and project life cycle. It then conducts an in-depth analysis of the methods, standards, sources, combinations, analysis, and operational processes of these project's original data factors, forming the data flow and evaluation foundation for the first half of the evaluation report, and provides the data collection tables for these.
Finally, it introduces how to apply relevant mathematical models for analysis, including the analysis of national economic benefits, uncertainty analysis, and overall evaluation, thereby enabling the mastery of evaluation techniques.