Study On Investment Decision Methods And Application For Auto Components Capacity Build

As the automobile industry is rapid and sustainable development in China, the new plant invested by more and more automotive component enterprises plan to expand capacity in recent years, but in fact, for lacking of system improved and highlight practicable investment decision methods, there have two different investment type:crazy investment or prudent investment which have significantly affected investment benefit and development.Based on analysis the current situation and problems of auto component capacity build investment decision in China, the paper study the program investment decision methods and evaluation index of net present value,internal rate of return and payback period on investment; For more and more multiple unnecessary factors during the investment decision, study the confirm methods and calculation formulas of discount rate in this paper; Application and verification is done by combining the enterprises actual investment case for building a more rational and scientific theory basis of investment decisions for auto components capability build under the new situation.