Feasibility Study On The Standard Industrial Plant Construction Project Of Economic And Technological Development Zone

With the great development of China's economy and fast pace of its industrialization,uncontrolled construction of industrial park and the introduction of investment regardless of possible waste have caused serious waste of industrial land resources.Together with the development of our economy,China has witnessed a chaos period of disorderly expansion and free use of industrial land. From 2001 the central government has permitted the industrial land price can rise as the other non-industrial land does.So the rising cost and the government encouragement to remove industrial zone out of the city have caused industry hollow phenomenon in the city center.In order to avoid the occurrence of such cases,undertaking a scientific and reasonable feasibility study on standard industrial plant construction is a prerequisite to control the risk in investment and ensure a rational development.Because of the large amount of investment,great number of uncertainties and risk in development and operation in the industrial plant construction project,its feasibility study is of great significance to the investment decision and project operation.Based on theories in standard industrial plant construction project feasibility study and the theory of evaluation of the national economy,with the reference of domestic and foreign documents and research materials,this article carries on a feasibility study on the Longquanyi Zone Industrial Development Project for the purpose of facilitate decision making for the investor s and construction of its industrial plant s.The project lies within the Longquanyi Zone,Chengdu City,with great transportation convenience and market potential.The IRR(internal rate of return) is 16.2%after all income tax of the project,the FNPV(Financial Net Present Value) is 72,514,800 RMB(I=10%),with the investment recovery period of 7 years,which means the investor can recover all their investment in 6 years(including the construction period) since the operation of the project; pre-income tax,IRR=19.75%,FNPV=127,978,000RMB(I=10%),static investment recovery period:Pt=7 years(including the construction period),This project is feasible and it can gain satisfactory return on investment.This article carries out a feasibility study on standard industrial plant construction project and analyzed basic conditions and characteristics of this project;Secondly,based on the research on the overall economic condition and industry development of Chengdu,the author forecasts the supply and demand trend of industrial plant of Chengdu in the near future.The author adopted a comprehensive analysis approach to evaluate and select development plans,then undertakes economic,financial evaluation and analysis of uncertainty on the project based on the total investment and sales estimates.Theauthor uses a huge amount of primary data to carefully study and analyze project background,market environment and construction condition,and have made clear the project's investment value and social benefits.At the same time,the author proposed problems in the project which should be paid attention to.The conclusion is that the project is of investment value and it can be developed.