The A Company LWC (LWC) Analysis Of Project Development Secision

The feasibility study is a kind of management technologies that is widely applied in thearea of project, innovation of technology and development of new products. We will conducta comprehensive study on demand from market, size, supplement of raw materials, channelsof funding, profitability, environmental measures and so on. And we make a full research onbusiness environment, technology, earning and risk of the project. We make conclusions thatwhether the project is feasible after a lot of study. The aim of such study is to minimize therisk. That is really meaningful.Yingkou Paper Making Company is the leader of the paper making industry. It has theadvanced technical equipment, excellent management and financial skills. All of these makethe company take the forefront in the paper making industry. LWC is a new project that thecompany decides to develop and this decision is based on the current situation. According tothe theories and regulations, we will conduct a comprehensive research on the feasibility ofthe project. We hope that that we can make a contribution to the investment decision..In this paper, we will use a lot of methods to study the feasibility of the project. Suchlike qualitative approach and quantitative approach, the static research method and thedynamic research method. We study the market environment, resource, technology,competitive levels and so on. This paper will focus on the investment and funding, cost ofproduct, earning, tax and cash flow. At the same time, we will prepare financial statementand try to estimate some key indexes, such like the net present value. Based on the thingsthat mentioned above, we will make the financial evaluation. At last, we will study the riskof the project by the way of break-even analysis and sensitivity analysis. In this way, we canimprove the reliability of making project decision. According to the result, over a fixed timeperiod, the new project can bring good economic effectiveness and social benefit and theproject is financially feasible.