own economic effect

The best relative economic effect

The transitional stage when production is put into production and has not yet reached design capabilities.

The ramp-up period refers to the time after production operations reach the expected design level.

static

dynamic

interest coverage ratio

Loan repayment period

debt service ratio

Assets and liabilities

current ratio

quick ratio

total investment return

Net profit margin on capital

It reflects the investment effect of the plan to a certain extent and can be applied to various investment scales.

excellent

inferior

Real questions

Real questions

It can only be used as an auxiliary evaluation indicator or used in combination with other evaluation indicators.

excellent

inferior

Easy to understand and easy to calculate

Usually only static investment payback period calculation analysis of technical solutions is performed

The static investment payback period should be calculated from the year when the construction of the technical solution begins.

Static payback period Pt

FNPV>0

FNPV=0

FNPV＜0

Consider the value of time, taking into account the entire calculation period

The judgment is intuitive and the profitability level is expressed directly in monetary terms.

A benchmark rate of return must first be determined, and it is difficult to determine the benchmark rate of return.

Financial net present value must carefully consider the life of mutually exclusive alternatives

It cannot truly reflect the efficiency of unit investment, the operating results of each year, and the recovery speed of investment.

FIRR≥iC

FIRR＜iC

1. Taking into account the time value of money

2. Reflect the degree of return from the investment process

3. It is not affected by external parameters and depends entirely on the cash flow of the investment process.

4. No need to determine the benchmark rate of return in advance

1. Trouble with calculations

2. Unconventional cash flow solutions with no or multiple solutions

3. It cannot be used for the comparison and selection of mutually exclusive solutions (applicable to the economic evaluation and feasibility judgment of independent technical solutions with regular cash flow)

Capital cost, opportunity cost, investment risk, inflation

Benchmark rate of return ≥ cost of capital

Benchmark rate of return ≥ opportunity cost

Benchmark rate of return is directly proportional to investment risk

Inflation rate ↑, price index change rate ↑, then the benchmark rate of return ↑

Determined according to government policy guidance

Analyze all aspects of the situation and make a comprehensive determination based on industry characteristics and industry capital composition.

Consider country risk factors first

A low debt service reserve ratio indicates that there are insufficient funds to repay the principal and interest of the debt, and the risk of debt repayment is high.