Study On Feasibility Of Copying Production Line Project Of Suzhou A Company

Under the market economy system, Fesibility study method is used to analyze the project of enterprise which is an essential tool to analyze market, technology and financial feasibility. Meanwhile it is an important basis for enterprise to judge whether the project is feasible and improve scientific decision-making of project. Based on the previous market investigation, Company A believes that copy paper is the high degree product of paper industry boom, meanwhile the future market of high quality copy paper will show a good development potential. Therefore, Company A plans to increase A4 copy paper cutting capacity of 70,000 tons in the current capacity of uncoated printing and writing paper. It will further expand the scale of production and meet the growing domestic market demand.This paper uses the project management basic theory and principle of project economic evaluation to study the feasibility of copy paper cutting line project of Company A which includes the internal and external environment and market demand analysis, technology and process feasibility, financial feasibility etc. At the same time, it has prepared the basic financial statement of the project according to the accounting standards for business. On this basis, the static and dynamic financial evaluation index are analyzed and evaluated. Finally, in order to improve the reliability of the project financial evaluation and decision-making scientifically, the break even analysis and sensitivity analysis method are used to analyze the project uncertainty and risk, meanwhile establish the risk prevention countermeasures. The evaluation results show:the payback period of investment about 4.9 years(including the construction 2 years); investment tax rate is 43.8%; financial internal rate of return is 37.9%; financial net present value is 287.42 million yuan; break-even point is 42.3%. The above financial indicators are better than the industry and enterprise evaluation parameters. Meanwhile internal and external risk of cutting line production project can be evaded by taking some effective actions. Therefore, copy paper cutting production line project of Company A is feasible.