Project Financial Post Evaluation Model Design Based on Cash Value Added Theory

DOI

10.2991/icesem-17.2017.111How to use a DOI?

Keywords

project post evaluation, cash value added, financial benefits, cash management

Abstract

The number of projects invested by Chinese enterprises is rising rapidly, enterprises are facing overcapacity, resource redundancy and other issues. Project post evaluation method can fix deviations from the feasibility assessment, thus, the value of the project can be maintained. In accordance with the relevance between project performance evaluation and cash movement, the concept of "Cash Value Added" (CVA) is proposed with its theoretical foundation, calculation method and driving factors. A new post evaluation model based on CVA which combines discounted cash model with actual operating cash flow is designed. The financial situation of the project is analyzed from the perspectives of measuring current earning ability, assessing surplus value, revising internal return rate, and finding driving factors, the new model is an effective evaluation tool in line with the actual situation.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Shengyu Wang
AU  - Tao Li
PY  - 2017/10
DA  - 2017/10
TI  - Project Financial Post Evaluation Model Design Based on Cash Value Added Theory
BT  - Proceedings of the 2017 International Conference on Education Science and Economic Management (ICESEM 2017)
PB  - Atlantis Press
SP  - 494
EP  - 497
SN  - 2352-5398
UR  - https://doi.org/10.2991/icesem-17.2017.111
DO  - 10.2991/icesem-17.2017.111
ID  - Wang2017/10
ER  -