DIFFERENT FINANCIAL ANALYSES ON BOT PROJECTS WITH THE CASE OF HUALIEN HOPING INDUSTRIAL HARBOR

Hong-Ching Su ； Chia-Jung Tu ； Tyrone T. Lin

《Advances in Financial Planning and Forecasting》 7期 (2016/10) Pp. 77-89

https://doi.org/10.6292/AFPF.2016.07.04

摘要

This study uses the Hoping Industrial Harbor build-operate-transfer (BOT) project as an example and analyzes the feasibility of financial investment projects. In traditional investment evaluation decisions, capital budgeting methods such as net present value (NPV) and internal rate of return (IRR) are most commonly used but traditional capital budgeting is a static model, which will not help decision-making in a timely manner in the face of the uncertain future cash flows. It also lacks management flexibility. Decision makers are assisted by using sensitivity analysis in consideration of the following variables: shipping volume, announced land, rate of government rent, and facility maintenance fees to make strategic decisions under a variety of future financial changes. Then, this study applies an expansion of scale decision tree to determine whether to implement a second phase project and provide decision makers more flexible investment strategies. The findings of this study contribute to the development of related future BOT projects.

關鍵字

Build-Operate-Transfer ； Net Present Value ； Internal Rate of Return ； Sensitivity Analysis ； Decision Tree ； Hualien Hoping Industrial Harbor

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