Xinjiang Pharmaceutical Factory Expansion Project Investment Analysis

Xinjiang pharmaceutical manufactory will invest 13.443 million CNY for building modern pharmaceutical manufactory which accords with the standard of G.MP. The enterprise mainly produces normal material medica, such as troche, refine hemp flavine, refine liquorice zinc, transfusion, granular preparation, etc. These products have more market demand in Xinjiang sale market. By cash flow statement analyzing, the gross net cash flow is 215. 11 million CNY. Making use of the estimate index of investment project.net present value(NPV) is 157.25 million CNY, present value index (PI) is 2.24, internal rate of return (IRR) is 13.94%, payback period is 6.49 years, average accounting return is 36.03%. By analyzing return and risk, especially using beta coefficient, the project has stable income and lower risk. By cost-volume-profit analyzing, safety margin ratio is 57.04%. By sensitivity analyzing, sale income is most sensitive factor. But according to financial leverage theory, the project has definite risk. After analyzing financial ratio, such as liquidity ratios, quick ratio, return on equity , etc, The enterprise will improve its financial status. In a word, this investment project is feasible.