Investigating the optimal leverage ratio in the financing of new energy vehicle (NEV) projects: A risk management perspective
Projects that require significant capital investment necessitate meticulous consideration of the project financing approach. Based on the background of new energy vehicle industry, this thesis proposes the assumption of empirical research on project financing method selection. To achieve this, the research conducts a comprehensive review of relevant literature, including the project financing method, factors influencing project financing structure, and decision models of financing methods. Moreover, the proposal presents a financial model that utilizes stochastic simulation optimization to identify the optimal leverage ratio from various sources. The aim is to achieve maximum net present value (NPV) while controlling the default risk. By using this approach, the model helps to balance the benefits of diversification and cost efficiency while managing the risks associated with the selected debt instruments.
