4. Analysis of return on investment 1. Conceptual return on investment is an evaluation index to measure the profit level of investment scheme, which is the ratio of annual net income to scheme investment in a normal production year after the technical scheme is completed and put into production to reach the designed production capacity.
it indicates the annual net income created by unit investment in a normal production year. The ratio of annual average net income to investment can be calculated for the scheme with large changes in net income in each year during the production period. The calculation formula is:
2. Discriminant criterion compares the calculated return on investment (R) with the determined benchmark return on investment (Rc): if R≥Rc, the scheme can be considered and accepted; if R < RC, the scheme is not feasible; 3. The application formula is divided into total return on investment and net profit rate of capital according to different purposes of analysis. (1) Total return on investment (ROI) The total return on investment indicates the profit level of the total investment, which is calculated according to the following formula: where EBIT—— is the annual profit before interest and tax in the normal year of the technical scheme or the annual average earnings before interest and tax during the operation period; TI—— Total investment of technical scheme (including construction investment, loan interest during construction period and all working capital). The total rate of return on investment is higher than the reference rate of return in the same industry, indicating that the profitability of the technical scheme expressed by the total rate of return on investment meets the requirements.
(2) the net profit rate of capital (ROE) refers to the profit level of the capital of the technical scheme, which is calculated according to the following formula: where NP—— is the annual net profit of the technical scheme in normal years or the average annual net profit during the operation period, and net profit = total profit-income tax; EC-capital of technical scheme. The net profit rate of technical scheme capital is higher than the reference value of the same industry, which shows that the profitability of technical scheme expressed by the net profit rate of technical scheme capital meets the requirements.
for the technical scheme, if the total return on investment or the net profit rate of capital is higher than the bank interest rate in the same period, it is beneficial to borrow moderately. On the contrary, excessive debt ratio will harm the interests of enterprises and investors.
Therefore, the total return on investment or the net profit rate of capital can be used not only to measure the profitability of the project construction scheme, but also as a reference for the financing decision of the technical scheme.
4. The index of return on investment (R) is clear, intuitive and easy to calculate, which reflects the advantages and disadvantages of investment effect to a certain extent and can be applied to various investment scales. However, the shortage is that the time factor of investment income is not considered, and the importance of time value of funds is ignored; The calculation of indicators is too subjective and arbitrary, so it is difficult to choose the normal production year, and its determination has certain uncertainty and human factors.
5. Scope of application It is mainly used in the early stage or research process of engineering construction scheme formulation, and the scheme with short calculation period and no detailed information needed for comprehensive analysis is especially suitable for the selection of engineering construction scheme with simple process and little change in production situation and the evaluation of investment economic effect.
Relationship between technical scheme capital and total investment and construction investment in engineering economy
Total investment = construction investment+working capital
Construction investment = Jian 'an project cost+other fixed assets cost+reserve fund+loan interest during construction period
Capital is said from the perspective of capital source, and total investment = capital+funds from other sources
What is the difference between technical scheme capital and registered capital? Are they equal? Thank you.
Project capital mainly refers to "projects".
registered capital refers to the shareholders' equity (capital) registered in the industrial and commercial bureau for the establishment of an enterprise.
it is not necessary to register an enterprise in the last project, but it can be the last production line.
this is the difference between the two.
*** The same point is equity capital, which is raised by shareholders, not loans.
Relationship between total investment and capital
The source of construction projects consists of project capital and loans. The relationship between total investment and capital is that capital needs to account for a certain proportion of total investment, and the greater the risk, the more capital Sichuan needs. It is generally believed that the minimum capital of a project cannot be less than 3% of the total investment.
for reference.
why is the capital of technical scheme expressed by EC
Equity Capital
what is the relationship between the total investment of technical scheme and the capital of technical scheme?
4. Analysis of return on investment 1. Conceptual return on investment is an evaluation index to measure the profit level of investment scheme, which is the ratio of annual net income to scheme investment in a normal production year after the technical scheme is completed and put into production to reach the designed production capacity. It shows the annual net income created by unit investment in a normal production year. The ratio of annual average net income to investment can be calculated for the scheme with large changes in net income in each year during the production period. The calculation formula is as follows: 2. Discriminant criterion compares the calculated return on investment (R) with the determined benchmark return on investment (Rc): if R≥Rc, the scheme can be considered acceptable; if R < RC, the scheme is not feasible; 3. Application formula According to different purposes of analysis, the return on investment is divided into total return on investment and net profit rate of capital. (1) Total return on investment (ROI) The total return on investment indicates the profit level of the total investment, which is calculated according to the following formula: where EBIT—— is the annual profit before interest and tax in the normal year of the technical scheme or the annual average earnings before interest and tax during the operation period; TI—— Total investment of technical scheme (including construction investment, loan interest during construction period and all working capital). The total rate of return on investment is higher than the reference rate of return in the same industry, indicating that the profitability of the technical scheme expressed by the total rate of return on investment meets the requirements. (2) Net profit rate of capital (ROE) The net profit rate of technical scheme capital indicates the profit level of technical scheme capital, which is calculated according to the following formula: where NP—— is the annual net profit of technical scheme in normal years or the average annual net profit during the operation period, and net profit = total profit-income tax; EC-capital of technical scheme. The net profit rate of technical scheme capital is higher than the reference value of the same industry, which shows that the profitability of technical scheme expressed by the net profit rate of technical scheme capital meets the requirements. For the technical scheme, if the total return on investment or the net profit rate of capital is higher than the bank interest rate in the same period, it is beneficial to borrow moderately. On the contrary, excessive debt ratio will harm the interests of enterprises and investors. Therefore, the total return on investment or net profit rate of capital can not only be used to measure the profitability of engineering construction schemes, but also be used as a reference for financing decision-making of technical schemes. 4. The index of return on investment (R) is clear, intuitive and easy to calculate, which reflects the advantages and disadvantages of investment effect to a certain extent and can be applied to various investment scales. However, the shortage is that the time factor of investment income is not considered, and the importance of time value of funds is ignored; The calculation of indicators is too subjective and arbitrary, so it is difficult to choose the normal production year, and its determination has certain uncertainty and human factors. 5. Scope of application It is mainly used in the early stage or research process of engineering construction scheme formulation, and the scheme with short calculation period and no detailed information needed for comprehensive analysis is especially suitable for the selection of engineering construction scheme with simple process and little change in production situation and the evaluation of investment economic effect.
why do you want non-patented technology for project capital investment
I hope it can help you:
The main sources of enterprise capital are:
1. All levels of * * * budgetary funds, extra-budgetary funds and various special construction funds;
2。 Funds provided by investment institutions authorized by the state;
3。 Funds invested by domestic and foreign enterprises and institutions;
4。 Funds invested by social individuals;
and other ways, etc.
the capital of an enterprise can be expressed in the form of money, or in kind, industrial property rights, non-patented technology and land use rights. The investment is made in kind, industrial property rights, non-patented technology and land use rights, but it must be assessed and priced by a qualified asset appraisal institution according to law, and it shall not be overestimated or underestimated. In addition, the proportion of investment with industrial property rights and non-patented technology shall not exceed 2% of the total capital of investment projects, unless the state has special provisions on the adoption of high-tech achievements.
the capital of the investment project is subscribed at one time, and will be put in place in proportion year by year according to the approved construction progress.