The Financial Evaluation And Risk Analysis Of CFQF Company Diesel Engine Production Line Investment Project

In recent years, with rapid development of China’s auto industry, the valspar is in the first place in the world in six years. with the increasingly tense of energy and national focus on our environmental protection new type of diesel engine with low fuel consumption and low emission is more and more popular.CFQF company diesel engine production line investment project is a key project. CFQF responses state’s environmental protection and energy policy, comply with the demand trends of industry development and determins to invest in " much starker choices-and graver consequences-in planning". After the completion of the project, CFQF company would be one of the most important supplier of the light diesel engine in China, which can satisfy the demand of domestic power industries in SUV, high-end light truck, ship and so onIn this paper, based on the financial evaluation and risk analysis of investment project, it provides the basis for project investment decision-making, ensures that the project is economically feasible. The analysis of this case will provide important reference to auto engine industry investment and construction as well as some other similar projects.First of all, this paper introduces the related theory and method, which provides a theoretical basis for the research of project performance evaluation and risk analysis. Second, this article introduces the basic situation of the project from the project background, project construction necessity, construction conditions, engineering plan and market analysis etc,which provides the necessary parameters and content for the project performance evaluation and risk analysis. And then, based on financial statements, calculation and analysis is mainly focused on the internal rate of return, financial net present value,and uncertainty analysis is carried out. Through Identifing and evaluating the risk of the project,some countermeasures.has been put forward. Finally, it is concluded that the project is reasonable and can make good economic benefits,on the other hand,the risk can be controlled, which helps make project decisions.Through SWOT analysis, we have analyzed the project’s internal and external environment in this paper. We have estimated the financial data on the total cost, sales revenue and profits.the balance sheet, together with the income statement and cash flow statement, make up the cornerstone of the company’s financial statements. We focus on calculating internal income rate, financial net present value, the payback period of investment and asset liability ratio on financial evaluation index of this project. What’s more, the project constructional schedule risk, market risk, technology risk, supporting conditions risk factors are identified, We also took the risk probability and the impact matrix method to analyze.and then ordered the priority of the risk, put forward the effective, practical risk management plan at last. Based on profit and loss balance analysis method and single factor sensitivity analysis method, the uncertainty on the project is analyzed.This paper argues that economic indicators of 2.0L diesel engine production line project are feasible and reasonable, with controllable risks, we are able to achieve the desired objectives, it provides reference for project decision as well.