Automotive Parts Industrial Investment Project Feasibility Study

The purpose of feasibility study for investment projects is to provide the investors, decision-makers with the scientific basis for decision-making. According to the actual situation of enterprises facing and feasibility study on specific request, the paper explores the feasibility study theory with case analysis combining the integrated use of feasibility study, project appraisal, strategic management, financial management, operation research theory and methodology. The paper explore the feasibility study methods of automotive parts in industrial investment project by using the empirical analysis method through the example, The purpose of the paper is expected to play a guiding role of practical work in automotive parts industry investment projects feasibility study area through theoretical research and empirical analysis .The concept stage of development, the role and content of the feasibility study is first introduced in the paper. Then we explore the requirements of the preparation of the investment project to the government of the automotive parts industry investment projects in conjunction with the national investment system reform and the practical work. After that, we explore the reflection of investment system reform to enterprise investment feasibility study and investment decision-making. Finally, we analyze and make some thoughts of the problems encountered in the process of writing the feasibility study reports and making the preparation of the investment project to the government.The paper explores the implicit premise of the feasibility study for the project. Through the analysis to the characteristics and methods of feasibility study for the automotive parts industry investment projects, we explore the methods and content of the feasibility study for this kind of project and note that there are many differences between this kind of projects and general industrial projects, such as demand forecasting, product pricing, investment content, investment arrangements, investment decisions and investment estimates, and so on.The paper explores the subject of cash-flow, profitability and solvency index chosen for the feasibility study in the financial evaluation methods. And we give proposals on feasibility study in the statements improvement and evaluation indexes chosen after explored the inadequacies of the original feasibility study methods.The paper explores the empirical analysis methods in the feasibility study on the automotive parts industry investment projects, such as the background and project profiles, market forecasts, equipment technology and engineering programmes, the main raw material and fuel supply, transportation and support engineering, financial analysis and risk analysis through the case of the JY company's six-speed automatic transmission clutch. And we explain how to make the feasibility study on the investment projects of automobile parts industrial. The paper focuses on the financial analysis and calculation of the relevant financial indicators. In order to improve the accuracy of financial analysis, we related the same subjects in the different financial statements in accordance with the principles project financial appraisal by using the Excel software and calculate indexes, such as the financial net present value, financial internal rate of return and investment recovery period, and so on. In the paper we make the surplus of funds analysis, profit and loss balance analysis and sensitivity analysis by this way and achieved better results. By this way, we provide a more adequate basis for investment decision-making and we achieve the purpose of feasibility study.