Research On The Economic Evaluation Of The Plan For Automobile Project AB5

In recent two years,the continuous growth of China’s automobile sales stopped.Faced with the new sales situation,new market environment,and increasingly complex automobile technologies,the role of economic evaluation for an automobile project plan is more and more important.The economic evaluation of a project plan can provide information about the economy of the project,including the payback period of the initial investment,expected profit to confirm whether it can meet the development needs of the company.AB5 automobile project is an example to discuss the economic evaluation method of automobile project in the article.Firstly,the current theoretical study on the economic evaluation of projects is introduced,including dynamic analysis and static analysis methods and relevant economic indicators,such as project profitability and solvency.Considering the characteristics of automobile projects,the focus and methods of the economic evaluation of automobile projects are introduced.Secondly,the overview of the AB5 project is introduced,including the product introduction,site selection,supporting conditions,an overview of the company,main investment content,and time schedule.Thirdly,the demand analysis of AB5 project is introduced,including macroenvironment,automotive industry,product segmentation,technical features of the products,and its manufacturing process,as well as the investment and cost.Based on the information above,economic data of the project is predicted,including general assumptions,selling prices and sales volumes,investment,and costs.Then the article displays the static and dynamic analysis methods to evaluate the profitability and solvency of the project.The result shows that the dynamic payback period,net present value,internal rate of return,and the asset-liability ratio of the AB5 project meet the economic requirements.Since project risks also need to be considered,the article also uses sensitivity analysis and breakeven analysis on price,sales volume,material cost,construction investment.The result shows that the risks are within an acceptable range.Finally,the conclusion of the economic evaluation of the AB5 project is that the project has large market demand,a suitable construction scale,and good economic and social benefits.In addition,according to the project uncertainty analysis,it proves that the AB5 project has sufficient ability in risk resistance.Meanwhile,it is necessary to pay attention to risk in price and material cost risks.It is advised to use diversified competition strategies to avoid price wars.It is also necessary to closely track market demand and competitive products and optimize the material supply system and costs to reduce risks.