The Research On The Investment Decision-making And The Risk-control Of The JDC Energy Efficient Glass

Investment is one of the three engines which promotes economic development ofour country. For a long time, it has played an important roll in maintaining theharmonious development of national economy, increasing people`s standard of livingand solving employment problems. However, due to a number of factors, there are stillsome phenomena exist in China`s investment which restrict the health and sustainabledevelopment of socio-economic such as the mass industry distribution, the seriousexcess capacity, the weak risk consciousness and the low level management.This article takes investment decision and risk management of JDC`s energysaving glass project as the object of study. Firstly, it chooses the method whichcombines PEST model and SWOT analytical method to analyze the internal andexternal environment of energy saving glass project. And also, it finishes the productscheme design and argues the need for project investment by analyzing and forecastingthe region environment and the market environment which the company plans to invest.Secondly, it analyzes economic indicators such as total investment amount, cost ofproducts, cash flow, FNPV, internal rate of return and the payback period. Usingbreak-even analysis and sensitivity analysis, it fully demonstrates the feasibility ofinvestment project.At last, based on analysis of project risk identification, this article assesses projectrisk factors and designs some measures against the risk by using expert investigationmethod. After assessing the risk, it demonstrates the controllability of the projectinvestment risk. Through a series of demonstration, it comes to a conclusion that JDC` s investment in energy saving glass project is available and the investment risk iscontrollable.Firstly, this work can help JDC to establish completely investment decisionmechanism and risk prevention system. It can also raise JDC`s investmentdecision-making level and improve risk prevention capacity. Secondly, it can help JDCto raise the project management level and to improve the operating managementcapacity so that the enterprise can achieve the expected investment target when theproject is completed. Thirdly, it helps to establish oversight mechanisms, and itestablishes science project-permitting and service system among government, investorand intermediary agencies. Fourthly, it has reference and direction values for the othercompanies to build a correct value investment philosophy, to establish the scientificinvestment decision mechanism, the effective risk prevention system, and the standardinvestment management procedure.