International Conference on Construction and Real Estate Management 2016
A Study on the Economic Evaluation Method of Water Plant Construction Based on Risk Control
Publication: ICCREM 2016: BIM Application and Off-Site Construction
ABSTRACT
Water plant construction with large investment, long operating period that is more than 20 years, high sunk costs is an investment of high risk. It is necessary to study the economic evaluation methods of water plant construction. In this paper, the study was broken down into the following steps: (1) to found a water price adjustment mechanism ensure that investors have a reasonably stable income, (2) to establish regulatory mechanisms to ensure that the profit margin within a certain range, (3) to reasonably treat changes in inflation of long operating period, (4) to found the NPV evaluation model, (5) to solve to the model, (6) to gives an example for analysis.
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ACKNOWLEDGMENTS
This paper is supported by Science and Technology Fund (K09832017) of department of education of Jiangxi Province (K09832017) and Jiangxi Provincial Social Science Fund (K01402018).
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Information & Authors
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Published In
ICCREM 2016: BIM Application and Off-Site Construction
Pages: 692 - 697
Editors: Yaowu Wang, Ph.D., Professor, Harbin Institute of Technology, Mohamed Al-Hussein, Ph.D., Professor, University of Alberta, Geoffrey Q. P. Shen, Ph.D., Professor, The Hong Kong Polytechnic University, and Yimin Zhu, Ph.D., Professor, Louisiana State University
ISBN (Online): 978-0-7844-8027-4
Copyright
© 2017 American Society of Civil Engineers.
History
Published online: Aug 14, 2017
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