A Case Study Of Investment And Financing Decision About North Land Company's Relocation And Expansion

This paper analyses feasibility of North Land company's relocation and expansion project in case form. First, putting forward operation problem existing in North Land company, then, It introduces the basic circumstances of the company and its shareholder and makes analysis of five forces which could influence the industry, namely, customer, supplier, substitute, rival inside industry and new entrant according to "five forces models", and defines the case problem, basis of its resolution. focusing on the theme of financial evaluation of operation results of relocation and expansion project, the article puts forward solving way by making optimization analysis of all factors that have impact on cash flow of relocation and expansion project. The article forecasts future market volume and proposes expansion plan after analysing macro-environment of industry development. The article makes detailed analysis of choosing relocation site. At the same time, the article analyses problems of financing channels and capital structure optimization in the aspect of financial risk, financial leverage, assets structure and re-investment referential policy. The article also refers to such specific operational issues as relocation method, relocation timing and operation link.up. finally, on the basis of above-mentioned analysis, the article proposes a set of program of relocation and expansion and evaluates operation results of program by Net Present Value method to demonstrate feasibility of program. The article also discusses strategic needs of company's relocation and expansion.This article applies some basic theories in field of investment and financing study to feasibility analysis of relocation and expansion program. The article proposes its own solving way for some specific investment and financing decision problems in accordance with specific conditions of company's relocation and expansion.