High Speed Passenger Railway Project Investment Analysis Based on Equity Capital Attribute and Required Return

Abstract:

From the prospect of business economics and project investment analysis, an investigation was made of the mechanism of diversifying equity investment in high speed passenger railway business via analyzing the logical relationships between economic attributes of high speed passenger railway product and the invested equity capitals, and the required rates of return by equities. The attribute differentials for different equities were clarified. For high speed passenger railway project investment analysis, the net present value break even approach was employed to improve the evaluation concept and method by taking into account the differentia of the required rates of return by subdivided equities. Further, a case analysis was made of high speed passenger railway project investment focusing on economic feasibility with numerical illustration.

Key words:high speed passenger railway; capital attribute; project investment; net present value