Investment Plan For The Coating Project Of W&P

W&P is a main generator manufacturer in china which has an annual revenue larger than three hundred million Yuan,also support diverse product category including above 500 KW high-end generator.It has a promising perspective since this firm keeps increasing by 15% per year long with the development of diesel generator market.The cover board of generator is using coating iron board for decoration and anti-corrosion purpose.Nowadays,the iron boards are coating by commission out processing.Sometimes the coating processing manufacturer is not able to finish coating on time causing an impact to the generator production plan because of the rigorous environment policies,the increasing required amount of iron board and their own technology limitations etc.Hence,setting up a coating processing line by W&P will be able to improve the supply chain with lowering the cost for making the firm more competitive either in price or service.This article regards setting up a coating processing line is necessary since the prediction shows W&P will have a promising future through analyzing the market requirement and the development of the firm.On the other hand,this study proposes the ceramic techniques will be more suitable for pre-process after comparing different techniques across phosphate,silicane and ceramic through the research of coating industry.For coating approach,this study compares the difference among solvent type,water type and powder type,determines the powder type will be the most efficient,simplest and environmental friendly technique.Moreover,this research designs a process for emission and waste water to minimize the impact to nearby environment in order to get pass the environmental evaluation.Though the coating processing line will have advantage on techniques to other competitors in surrounding area since the advanced manufacturing solution,the tradeoff between benefits and cost still needs to be determined.Based on rough estimation the investment for this project will be 2.141 million Yuan.The discount rate for this project will be 11% by analyzing the online published related data and visiting the same industrial factories.Through the prediction for the cash flow and the calculation based on EXCEL,the net present value will be 81.54,IRR will be 20.86 and the MIRR will be 17.13% which is 6.13% higher than discount rate.After the risk analysis,this study considers the processing fee could be the most sensitive factor and the NPV will be 2.687 million Yuan when multiple factor interacting in the same time under the best environment.Because it is an internal processing,the processing fee will not change.The net value will be 340.31 thousand Yuan under the worst environment.Hence,this project does not have the risk to shrink the company's asset.Based on the research and tradeoff,the investment of this project will bring benefits to the firm.