RESEARCH ARTICLE
Real Estate Project Financial Evaluation Based on Cash Flow Estimation
Li Wei*, 1, Teng Yun2
Article Information
Identifiers and Pagination:
Year: 2015Volume: 9
First Page: 135
Last Page: 141
Publisher ID: TOBCTJ-9-135
DOI: 10.2174/1874836801509010135
Article History:
Received Date: 25/1/2015Revision Received Date: 1/3/2015
Acceptance Date: 10/3/2015
Electronic publication date: 19/8/2015
Collection year: 2015
open-access license: This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International Public License (CC-BY 4.0), a copy of which is available at: https://creativecommons.org/licenses/by/4.0/legalcode. This license permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Abstract
This paper analyzes the factors influencing cash flows and divides them as certainty factors and uncertainty factors; it mainly discusses the uncertainty factors causing change of cash flow. For the characteristics of uncertainty of cash flows in real estate project, we adopted probability theory and mathematical statistics to balance and estimate the cash flows. Then the computer simulation method for uncertainty factors based on Beta distribution and normal distribution is proposed, with the prediction method of cash inflow and outflow. Illustrated by the case of actual real estate projects, we provided financial evaluation by traditional evaluation methods and simulation methods of uncertainty factors and compared the evaluation results. The experiment results show that the improved method has more scientific and accurate performance in basic data, compared to the traditional method, and it can acquire more reliable Evaluation results.