The Research On Investment Plan Selection Of TL Door Industry Company T Project

TL Door Industry Co.,Ltd.is a high-tech enterprise.Its main products are steel-wood armored doors,wooden doors and fire doors.The main customers are major real estate companies.Due to the high quality of its products and good after-sales service,the company is facing a situation of short supply.At the same time,the company signed a new strategic contract with S and H customers in 2018.At present,the capacity of TL Door Company cannot meet the customer's order requirements.Therefore,TL Door Company expects to invest in the construction of T project by means of new production base.The contracted production requirements are all provided by the T project.In the process of designing the investment plan for the T project,TL Door Company proposed three investment plans for the project.Each of the three options has advantages and disadvantages,and it is impossible to intuitively judge which one is the optimal solution.This paper aims to use the financial analysis tools to quantitatively analyze the three investment schemes,use more accurate data and more scientific research methods to select the optimal scheme for the T project and conduct risk analysis.This paper first expounds the operating characteristics of TL Door Company and analyzes the strategic contract.It compares the production plan and engineering construction plan of three investment plans and compares them;then predicts the cash flow of various economic activities.And other factors affecting cash flow to introduce and compare the net cash flows of the three investment schemes for each year,and to determine the capital cost of the project through the capital asset pricing model;secondly,combine the net cash flows and projects of the three investment schemes for each year.The cost of capital is compared with the static value of the three investment schemes and the value after considering the options,in order to select and analyze the optimal investment plan.Finally,the most sensitive factor is identified through the single factor sensitivity analysis.Multi-factor sensitivity analysis measures the risk of the optimal investment plan and proposes corresponding preventive measures.According to the research,the difference of net cash flow of the three investment schemes in 2019-2020 is mainly reflected in the different production arrangements and engineering construction and corporate income tax of the three investment schemes;the difference in net cash flow between 2021 and 2023 Reflected in different production arrangements and engineering construction,it also reflects the difference in sales volume due to capacity constraints and the sales revenue,direct material costs,processing costs,direct labor costs,electricity costs and low-value consumables,sales Differences in fees,management fees,valueadded tax,working capital,working capital recovery and government subsidies,and differences in economic activities indirectly cause differences in corporate income tax and tax incentives.The comparison of the financial evaluation indicators of the comprehensive investment plan shows that the investment plan is the optimal one.The reason why the first scheme is the optimal scheme is that although the strategic contract guarantees the sales volume of the T project,it reduces the profit level of the T project;the investment scheme 2 and the scheme 3 have more idle capacity.The biggest risk point of the T project is that the unit direct material cost increases by 20%,the second major risk point is that the sales price drops by 5%,and the third major risk point is that the unit direct labor cost increases by 8%.