Study On The Investment Of LSf Company’s Agricultural Product Project

Agricultural product of LSF Company is a new project based on OTO (online to offline)management model, and engages in the agricultural products processing and sales ofintegrated commercial projects. Its characteristic is that the consumer either through offlinedining experience, to understand and enjoy the company of high quality goods (agricultural),and the company’s online electronic shopping website to choose goods conveniently andquickly online payments, and enjoy the door-to-door delivery of quality services. Whether theproject to be invested,LSF company has not yet to make a decision, this paper takes theproject as the research object, through the net present value of the project (NPV), internal rateof return (IRR), dynamic payback period (DPP) analysis to provide the basic of the decisionof LSF company.In this thesis, the overall conception of LSF company agricultural project andintroduction of the background were described, and the OTO operation mode of the projecthas been illustrated in detail, Besides, it’s reported that the advantage of adopt of the model ofOTO for the project of LSF company. We also focused on the project investment plan andexpected benefit calculation and project management forecast, etc. Using the formula tocalculate the net present value (NPV), five-year NPV of the project is calculated to be about399thousand Yuan, the internal rate of return (IRR) is14%, and it’s estimated that it takes atleast four years to achieve profitability for LSF project.These key decision index valuesindicate that the investment is worthy to invest.In the last part of the paper, using the analysis of sensitive factors that the most sensitivefactor is the turnover and cost of the product, has a great impact on the net present value ofthe project scheme, when turnover and reduce the product cost increase, the NPV is negative;Through advocacy and strengthen marketing efforts and cooperation and agricultural base andother measures, increase sales and reduce the product cost, ensure that the project is expectedto achieve the profit, so the project is worth investing.