The Evaluation Of Finance And Analysis On Risk Of Project JC1of Changqi Company

As an increasing competitive automotive industry, it is very important to theevaluations of finance and risk of the automotive investment projects.It has a vitalguidance function to the blindness which appears in the investment process of acompany, especially of a automobile companies in the increasingly fierce competitioncondition. A successful project can make a great advance to a company; even candetermine the survival or disappearance to a weak Chinese-owned-brand automobilemanufacturer. Therefore, this article comes to the comprehensive, scientific feasibilityconclusions that can provide important references to the company’s managers for theproject decision-making by using various theories of feasibility and risk evaluation,through combining with actual situation of the JC1project of Changfeng Company.Firstly, this paper reviews the relevant theories of feasibility, analysises of therelevant national policies about the automobile industry, the integral strength ofChangfeng Company in recent years. Then it puts forward the urgency to develop carproject. Secondly, the paper analyses the Internal&external environment, theurgency,the necessity of start the Project JC1and carries out the analysis on the markettrends of Project JC1.Thirdly, this paper makes the financial evaluation of Project JC1and analyses the profitable ability. Fourthly, the paper analyses the probability ofconventional risk and uncertainty that Project JC1may faces and makes a generalconclusion of the evaluation of Project JC1.Finally, it puts forward the correspondingmeasures and suggestions to the successful implementation of the project.The conclusions of this paper are as follows: the opportunities of the Project JC1are higher than its risks. With the strong support of the two major shareholders, theproject is expected to have good returns. Therefore, the project should be startedimmediately. But the company should carefully consider in terms of pricing, andshould control the costs strictly. The company should provide practical safeguardmeasures for the success of the project by preventing the systematical risks throughlearning the failure lesson of the former investments.