Financial Feasibility Study Of Fawer-IHI Company Turbocharge Project

With the development of socialism and investment policy, the feasibility study of financial project becomes more important. The feasibility study of financial is to predict financial profit and cost of the project, and to make the financial report and the evaluating standard, so that to analyse payoff ability and compensation ability, basing on the above condition to judge project financial feasibility.Analysing of financial feasibility is the important part of decision and evaluation, it cannot be omitted during any process .Under the marketing economic environment, the decision makers will get concolusion according to the financia feasibility,for example,project organizer can analyse the project necessary or develop it;Investors desicde to invest or not; Creditor right holder desicdes to provide load or not;Governments deside to peridict the project or not.Since Opening, Automobile Industry in China has got a rapid develop with the international cooperation, products technology,management,product quality and profit have improved obviously, it plays a very important role in China Economic Developmet.Basing the car manufactories' developing ,car's parts manufactories get chances to grow,quantity and profit improved obviously,but customer's pay more attention to comfortability and security,the requirement of car manufactories to car's parts manufactories is more strict.After the accession into the WTO, how to improve the competition ability becomes the automotive parts company's first task. Fawer Automotive Parts Company Ltd. ,which pursues the automotive parts's production and sales, established Changchun FAWER-IHI Turbo Co., Ltd.(short for joint venture below),a joint venture with Ishikawajima-Harima Heavy Industries Co., Ltd. (IHI) Ishikawajima Mass-Produced Machinery Co., Ltd. (IHK) and ITOUCHU Corp. and to do the financial feasibility research.The target of this project is to manufacture 306000 units turbochargers in 2006.The tatol capital is 246.52 million yuan including construction fee 209.58million yuan, circulating fund 36.94 millin yuan,registed capital is 123.3 milion yuan, Capital stakes divied 45% by Fawer,35% by IHI, 10% by IHK, and 10% by ITOUCHU.Basing on Construction Project Financial Methord and Parameter made by China government, we calculate financial estimate standard.Basing the above analysis ,it shows that this product contains advanced technology , the main customers consists of FAW Group FAW-VW and other big automobile companies, finacial and finacial evaluation standard show good, better than the mechanical industrial's Stat. standard.The company has 195 employee.For profit and social the project performs well, so it is feasible.This project is operating now, according to the present situation it matches the financial analysis, it proved correct application of data collection for further.Project investment is a very complicate economic activity ,the thesis do the analysis just on the financial feasibility ,so it has localization ,such as analysis of project techno logy. Cause of time limited and secrecy , some calculation is omitted.With the development of Chinese automobil industry and strictness of emission regulation,turbocharge will play more and more important roles,it will not only increase the power but also improve emission performance,in another words,this project will get economic results and in the meantime will get social and enviromental effect.