The research of the financial evaluation methods of investment projects based on EVA

Abstract

With the diversification of our investment and financing system in our country, the expected benefits to project of investors is increasing and the competition projects becomes much fiercer. As a result, A more rigorous condition and a much stricter consideration is given in selection of projects. So, sometimes, it is impossible to select a programmer which can create real value and meet a more rigorous demand by the traditional assessment indexes. This paper put forward a financial evaluation of investment projects based on EVA, which is a new evaluation used each time EVA as the basis for calculating the present under the premise of demonstrating projects feasible in the traditional evaluation, in order to consider the economic feasibility of the project based on EVA. Therefore, the real value created by projects would be accurate evaluated in this method.