Economic Analysis Of Yueda Company’s TW Power Battery Project Investment

To cope with energy and environmental pressures,the development of new energy vehicles is a strategic choice for China so as to promote economic transformation and upgrading.The Chinese government has issued a series of policies that have effectively promoted the rapid development of new energy vehicles.In the past five years,the new energy auto industry has maintained an average annual growth rate of 40%.It is estimated that the sales of new energy vehicles will exceed 2 million in 2020.As the core technology of the new energy automobile industry,power battery has become one of the key factors restricting the development of the industry.These are all issues of high concern of investors.In this environment,scientific analysis and economic research for the target market play a key role.Therefore,the power battery project has become a hot spot for investment by many car companies and investment institutions.As an investor,if you want to control investment costs and risks and make scientific and reasonable investment decisions,you need to carefully analyze the market and economy of investment projects.This is an important basis for formulating decisions and the key to ensuring the success of the project.In the end,we can maintain an advantage in the fierce market competition.The new energy automobile industry chain is long and the industrial supporting capacity is high.Therefore,it is crucial to invest in the power battery project,and to do a good job in establishing market demand forecast,product,technology,project construction plan,economic measurement and other aspects..This paper combines the relevant theoretical knowledge and application practice of project investment economic analysis at home and abroad.The study sets up the TW new energy vehicle power battery production base in Yancheng as a specific research object.First of all,qualitative analysis is used to analyze the power battery industry policy and market size,and to position the project.Secondly,quantitative analysis is used to analyze the investment,investment income and risk analysis of the project from the perspective of financial indicators and risk management.This part is the focus of the thesis research,which will focus on the research of static and dynamic income level,combined with investment return rate,net profit,net present value,through the total investment return rate,capital net profit rate,net present value,Internal rate of return,investment payback period,breakeven analysis and sensitivity measurement,analysis of project economic benefit evaluation indicators,the financial internal rate of return is higher than the set benchmark rate of 12%,the investment recovery period is better than the industry average The financial net present value is 283.02 million yuan,indicating that the project has strong profitability,good economic returns,strong project liquidity and certain anti-risk ability.Finally,new energy,new energy vehicles and key components are industries that China actively encourages and supports.The product market has broad prospects,clear investment focus,good economic and social benefits.The summary of the project research conclusions provide effective reference suggestions in the process of investment decision making as well as fully reflect the research value of the company.Analysis is the basis of decision-making.More than 90% of the world’s investment failures are due to the failure of investment decisions.Therefore,the investment efficiency research work of investment projects should be placed at the top of the investment work.Through the research in this paper,I hope also contributes to the research work of other power battery projects.