1, return on investment: return on investment is one of the most common financial indicators, reflecting the relative economic benefits of an investment project. It mainly compares the ratio of the net income that can be discounted to the investment expenditure during the investment period.
2. Return on investment: Return on investment is an important indicator to measure the annual benefits of investment projects, which measures the economic benefits created by investment projects and reflects whether the project can realize all the benefits of investment expenditure.
3. Net present value: Net present value is a financial indicator to measure an investment and reflects the return on investment of investment funds. Net present value refers to the sum of the market value of an investment, which discounts every net income in the future to the current market value.
4. Financial risk: Financial risk is an indicator to measure the risk level of an investment project. Financial risks are reflected in possible investment failure, investment income below the prescribed threshold, investment period extension, expected income and so on.
What does financial evaluation of investment projects mean?
Financial evaluation indicators of investment projects: net present value, net annuity flow, profitability index, internal rate of return and payback period, etc. Around these evaluation indicators, there are also evaluation methods such as net present value method, internal rate of return method and payback period method.
Financial evaluation of investment projects refers to an economic evaluation method based on the financial forecast of the project, according to the current fiscal and taxation system and current price of the country, analyzing and calculating the income and expenses of the project from the perspective of enterprises, and examining the financial status of the project, such as profitability, solvency and foreign exchange effect, so as to judge whether the project is financially feasible.