| In order to deal with the adverse impact of the“Double epidemic”of African swine fever and covid-19,A company decided to transform its business from pig breeding to pig slaughtering and processing,it is planned to invest in a new pig slaughtering and processing project,including two sub-projects of pig slaughtering in the first phase and meat processing in the second phase.The paper analyzes the feasibility of the project investment by the methods of literature study,field investigation,visiting investigation,financial analysis,entropy value and sensitivity analysis.Among them,the analysis of project cost found that the proportion of raw material cost reached 90% in the first phase of the project,and the total proportion of raw material cost and auxiliary materials and packaging materials exceeded 75% in the second phase of the project,pay attention to cost control.In addition,the financial analysis of the project found that,first of all,in terms of viability,the project in the production and stable operation after the gradual return to profit,and a trend of increasing year by year.In the fourth year of the project calculation period,the project is expected to achieve a large positive operating net cash flow,indicating that the project has a good financial viability.Secondly,from the perspective of profitability,the larger net present value of the first-phase and second-phase projects is 670 million yuan and 700 million yuan respectively;the internal rate of return is more than 24%,which is much higher than the industry benchmark rate of return of 10%,the results show that the project has a good economic profitability.Third,in terms of solvency,the asset-liability ratio of the first-phase project and the second-phase project is 17% —37% and2.5%—6.5% respectively,indicating that the debt burden of the project is very low and the debt risk is very small,ability to pay debts and liquidity strong.The uncertainty analysis of the project shows that,firstly,the break-even analysis results show that the production load rate of the first and second phase projects are 49.08% and40.06% respectively,which are relatively small,it shows that the project has strong ability to adapt to the market and anti-risk ability.Secondly,the result of single-factor sensitivity analysis shows that the change of operating cost is the most sensitive factor to the economic benefit of the first-phase and second-phase projects.Thirdly,the results of multi-factor sensitivity analysis show that when the four factors of fixed asset investment,sales price,operating cost and operating load change in unfavorable direction during the calculation period,the critical point of profit and loss of the first phase project is 0.73%,and that of the second phase project is 6.76%.The results show that the economic benefit of the project is acceptable through financial analysis,so the project has the financial feasibility of investment.In order to ensure the long-term stable operation of the project,the paper puts forward that the project construction and Operation Management should pay attention to the technical upgrading and enterprise management,follow the local policy closely,strengthen the project cash flow management and the fund utilization ratio,reduce the cost and operating costs,actively expand business cooperation,do a good job in transportation,strengthen the pig slaughter quarantine work and so on. |
