Changchun Changhong Industrial Park Project Feasibility Study Report

The previous feasibility study report of Changhong Corporation was too simple. No consideration was taken into the time value of capital and the dynamic assessment was rather rough, either. Criterion and promotion of the economic analyses must be done because its focus was on sales income, total profit before tax, investment profit rate and static recycling period after putting into practice of the project. Based on feasibility analyses on the market demand and products, the selection of the factory site, construction scale and the scheme of production and technology, environmental protection and occupational safety, organization and human resource distribution, calculating weighted average cost of capital of Changhong Corporation as discount rate of the project are emphasized in this paper while economic indexes of the project are forecast and analyzed, such as internal rate return, break-even points, sensitivity, net present value, etc.The knowledge of project management is introduced in the feasibility study in the paper, which would help an enterprise to set up a more perfect and systematic framework of feasibility analyses. The framework has been used to conduct the economic feasibility study of the project in Changhong Industrial Park in Changchun City. Meanwhile the risks of the project and the related policy to be adopted by the company are also made so as to provide the project managers with basis for effective decisions. The framework of feasibility analyses in the light of projects of Changhong Corporation will offer a useful reference to the investment and construction of other projects.