The Economic Evaluation Of A Car Company Engine Project

The economic evaluation refers to the scientific method and the comprehensivetechnical and economic analysis to a proposed project which tries to evaluate its feasibilityor infeasibility before the investment decision. It is an important link in construction processand a necessary job prior to the investment.Over20years, China’s auto industry has been rapidly changed and developed, graduallybecoming the prominent pillar in national economy. The car engine is the heart of the vehicle,but for a long time, its core technology has been monopolized by the foreign capitalenterprise, which restricts the comprehensive and rapid development of China’s car. In orderto enhance the market competitiveness and for the sake of sustained and healthydevelopment, A car company is advancing cooperation with famous international enginetechnology company to develop and study the car engines which has independent intellectualproperty rights.Using economic evaluation theory of project management, this article forms a total offive chapters, mainly from the project background, product characteristics, technical processcharacteristics, market analysis, economic analysis and economic indicators analysis,discussing the necessity and feasibility of developing and researching engine project.Accordance with the requirements of the project planning, once the project completed,the engines are produced to match the vehicles of the company, therefore, doing marketanalysis means analyzing the vehicle market. Because the project is a collaborative researchand development, this paper also introduces the partner’s qualification.Based on the research on nature, society, economy, technology and other factorsrelating to the engine project, this article analyses the proposed investment constructionschemes, evaluates the social and economic benefit after the completion of the project, andimplements a comprehensive argument of the necessity of the construction of projectinvestment, technological advancement, financial profitability, which provides a scientificbasis for investment decision for A car company.