Nanjing Han 200,000 Tons Of Dimethyl Ether Project Financial Feasibility Study

Feasibility study is a necessary work for enhancing the validity of project investment decision-making, playing an important role to promote resource utility and market competitiveness, meaning great to the sustainable development of the corporation itself and domestic economy.As the domestic economy developing, the country's energy demand grows. Especially as the car industrial development speeding up, the dependence on the petroleum grows bigger and bigger. The domestic energy has the characters of"rich coal, poor oil, lacking gas", so how to make full use of the rich coal to in order to reduce the heavy lean becomes a strategic problem about our country's energy safety. Thanks to the fuel ability of DME (dimethyl ether)– convenience, cleanness, high cetane, good drive power, little pollution, easy to become liquid, easy stock– DME can be used as replacement of car fuel and liquefied petroleum gas. In this case, producing DME by making methanol from coal can reduce the lean on petroleum. This article analyzes the finance feasibility of Nanjing Hanneng DME Project, from the corporation of the writer works in, using the finance analytic theory, providing reference for corporation.This article firstly introduces finance analytic theory and method, emphasizing time value of the fund, confirmation of discount rate, static and dynamic combinative method, definitions, merits and demerits of finance index. Based on the theory explanation, this article takes the instance of Nanjing Hanneng DME Project, analyzing its finance feasibility. Instance analysis contains three parts: the first part explains the project, including basic information, product scheme, technics and report on market demand and price for DME; the second part brings forth estimates on investment, sales income, cost expense, and edit of the three finance reports; the third part exams the earning capability and debt-repaying capability of this project, mainly studying net present value, interior yield, payback period and profit margin, and giving corresponding finance evaluation. The uncertainty analysis is made at the end of the instance segment, by means of breakeven analysis and sensitivity analysis. In addition, this part also assesses the project risk and offers response measure, so as to increase the reliability of finance estimate and the correctness of decision.According to the research, Nanjing Hanneng DME Project can recover the cost in the due time, and bring in considerable benefit. This project is feasible and worthwhile by checking the finance index.