Errors of Financial Decision-making in Debt Financing Investment Project and the Countermeasures

While debt financing has became the main sources of funding of general corporate investment project, the author analyzed the cash flow of debt financing investment project, and suggested enterprises make financial decision by further using net present value method and internal rate of return method. Different from the disposal of total investment hypothesis, investment project analysis should take the influence of borrowing costs on tax bearing, discount rate and others into full consideration. The collaboration and interaction of financing and investment decision making should be practically ensured by combining finance with accounting, and theory with practice, so as to solve the inefficiency issues existing in investment and financing decision making.