Nanjing High-precision Gear Group Marine Gearbox Project Feasibility Study

Feasibility study is the necessary work to increase the effectiveness and validity ofdecision-marking for project investment, and it is very meaningful for the sustainabledevelopment of an enterprise and national economy, because it is able to insure thatthe resource of an enterprise is utilized rationally.Nanjing High-Speed & Accurate Gear Group Co., Ltd (NGC) is a very importantenterprise of the state gear industry, and is also one of the 500 largest enterprises andthe high and new technology enterprise. The advantages in technical level andequipment, the favorable management and sound finance etc, all these make NGCkeep ahead of the craft brothers, and NGC hold all the trumps in high speed andheavy load gearbox market. The paper aims at the marine gearbox project invested byNGC and ZF marine Group, the largest independent gearbox manufacturer worldwide,and the paper focuses on feasibility study of marine gearbox project by the method ofengineering economics analysis and the criterions of project management, whichsupplies references of investment decision to the enterprise.In this paper, the feasibility of NGC marine gearbox project is studied by means of theincorporate method of qualitative analysis and quantitative evaluation, static analysisand dynamic analysis. The paper study mainly the feasibility of the market andtechnology, the conditions internal the enterprise, production scale, technicalprograms, marketing strategy and price management, investment estimation and fundcollection, cost estimation, sales volume and tax, and so on. In addition, the basicfinancial reports of NGC marine gearbox are made based on the analysis of somefinancial index such as payoff period of investment (static and dynamic), Net presentvalue, internal rate of return, etc. Finally, the sensitivity analysis and the Break-EvenPoint analysis are used in the uncertainty and the risk analysis of NGC marinegearbox project. The results show that the project is not only able to make goodeconomic benefit for NGC, but also can bring the favorable social benefits. Therefore,the project is feasible.