The Financial Feasibility Research For The YY Corporation On The Project Of LNG Gasification Station For Factory

YY company,founded 8 years ago,is an energy business enterprise in the field of natural gas.It used to focus on the LNG filling station for vehicles and has accumulated rich operating experience and industrial chain resources.Because of the high similarity between the LNG filling stations for vehicle and the LNG gasification station for factory,YY company want to enter the market of LNG gasification station for factory,in order to get the same success in the operating and the technology.Among the various enterprises that YY company is currently contacting,the LNG gasification station for the stainless steel industrial park in JY area has completed the feasibility study on the process and technology and the environmental assessment,and the financial feasibility is needs to be completed right now,in order to help YY company to make the decision of investment.This paper takes the LNG gasification station of YY company for the stainless steel industrial parkt as the research object.Firstly,the background and significance of the research are described.Secondly,the status quo about the research,the development trend of the project industry,are researched with literature research method,the advantages and disadvantages of YY company,the status quo and he development trend of the LNG gasification station,are researched with field research method and face-to-face interview method.Thirdly,with the precondition that the feasibility study on the process and technology and environmental assessment have been completed,sales volume,selling price,sales revenue,construction investment,procurement cost,labor cost and other operating expenses of the the project are predicted,through analyzes on the market environment and competition status.Finally,the incremental net cash flow of the project are predicted with direct method,the NPV,IRR,Dynamic PP are calculated and analyzed as the pivotal indexes,the risk is analyzed with single factor sensitivity analysis method and multivariate sensitivity analysis method,precautionary measure of the risk is researched,and the research conclusions are gotten at the end.Through the research,with the precondition of the incremental net cash flow of the project and discount rate,it is found that:the NPV of the project is 3.86 million yuan,much more than zero,indicating that the project increase the value of YY company;the MIRR is 20.02%,higher than the rate of return that required by YY company(15.04%);Dynamic PP is 4.42 years(excluding the construction period),shorter than the pay-back-time that required by YY company(not more than 6 years);all the three pivotal indexes indicate that the project is financially feasible.In 27 cases where 3 sensitivity factors including sales volume,selling price and purchase price changed continuously,there were 15 cases that the NPV of project is more than zero,accounting for 55.56%,indicating that the project still has some risks.Risks are mainly coming from the purchase price and selling price.The operation department judges that there is a low probability of worst case of selling price and purchase price.Under various precautionary measures of the risk,the risk of investment failure is relatively little,and the project is worth to invest.