Feasibility Study On Fuel Filter Project Of D Company

Feasibility Study is a kind of comprehensive analysis method which is on thepremise of prediction and for the purpose of making decision. Feasibility Study includestechnical analysis, economic analysis, financial analysis, social analysis and so on.Since the1990s, China began to introduce Feasibility Study systematically and use thetheory to make decision; however, the failure rate of investment is still high becausethere are still many problems we don’t understand exactly. So it is important to enhancethe research of this theory and bring it to all industries scientifically to avoid or reducethe error of the investment decisions.D is a company which has strong scientific research ability，since the day it wasestablished, it focused on mechanical and electrical products developed and recently itdeveloped an automatic hydraulic-driven backwash ifiel filter, now this product hasentered into Pilot stage, D decided to invest more in order to mass production. So it’snecessary to make a Feasibility Study before making investment decisions.This paper is based on the theory and methods of Feasibility Study to study theproject. Firstly, it analyzes the home and abroad market of the automatichydraulic-driven backwash fuel filter and use SWOT analysis model to analyze themarket competition. Secondly, it demonstrates the technical feasibility of this projectbase on the R$D ability of D Company, technical scheme and system structure ofproduct production capacity and so on. Thirdly, according to the basic theory andevaluation system of financial management, it estimates investment cost and investmentbenefit, and it also analyzed ifnancial indicators, such as BEP、ROE、 ROI、 IRR、NPV and so on，atfer that, it predicts the uncertain factors and ifnd the sensitivity factorsby using the theory of uncertain analysis. Fourthly, it predicts and analyzed the risks ofthe project and made some solutions that can reduce the risks. Then it analyzes theenvironmental and social beneifts of the project. Finally，a comprehensive analysis ofthe project is makes and draws the conclusion that this project is feasible. Last but notleast, it makes some suggestions to make the project more successifil. I hope that thispaper could provide reference for project, and could provide suggestions to the otherswho want to make a feasibility study at the same time.