A Corporate Ethylene Renovation Project Investment Analysis And Evaluation Research

Investment project is of great significance to the blossoming of an enterprise. It is a quite specific item in investment strategies. It is well-known that feasibility study provides an effective way to implement an investment project in a scientific way, playing a vital role in the enterprise itself and the smooth development of the national economy in that it can enable an enterprise to make reasonable use of resources and promote its competition.With the rapid development of economy, the national demand for ethylene is tending to increase quickly. It is estimated that the production capacity of ethylene in the western part of China accounts for only 7% of the whole country while the local demand accounts for 15%. Being an important smelt production base in western China, A Company is a large-scale comprehensive smelt enterprise and enjoys a strategic position in energy. This thesis takes A Company's investment in ethylene transformation as its objective.The paper firstly analyzes the basic situation of ethylene market both abroad and at home, making a further study of the developing tendency of ethylene and predicts its demand in the coming years. Then with the combination of qualitative analysis and quantitative assessment, it makes a complete and profound analysis in the project's market feasibility, technology feasibility, production capacity (scale), technology scheme, investment estimation, fund raising, cost assessment, sales revenue and taxes estimation, which consequently makes it feasible for A Company to improve its production capacity to invest in ethylene project. Subsequently, with both static and dynamic analysis methods, it analyses some related financial indexes such as the cash current, net revenue, internal profits and investment profits. Finally, the paper studies the uncertainty and sensitivity of the project to assure the reliability of the project's economic evaluation and the scientificalness of the decision.Through careful analysis and research, the thesis shows that A Company's ethylene project is feasible for it can recover the cost and bring considerable profits financially and socially.