The Financial Feasibility Study On The Lithium Battery Copper Foil Project Of CH Company

After years of competition and integration,the standard copper foil was gradually eliminated from its backward production capacity.In order to cope with the development trend of thin and wearable consumer electronic products in the future,as well as the miniaturization of lithium batteries and the rapid increase of energy density,the wide application of lithium copper foil is the inevitable direction of the development of electronic copper foil.Since 2016,the rapid development of new energy vehicles has strongly boosted the demand for lithium batteries.As an indispensable and important material in lithium batteries,the demand for lithium copper foil has grown rapidly.Therefore,from the market point of view,investment in lithium copper foil is very promising.CH Company is one of the enterprises engaged in copper foil production earlier in our country,and has accumulated a number of copper foil related technologies and production processes,laying a solid technical foundation for the implementation of the lithium battery copper foil project.In addition,CH Company has been engaged in the production of copper foil products for a long time and has formed a stable cooperative relationship with a large number of customers.It has carried out in-depth strategic cooperation with a number of well-known domestic and foreign enterprises and has established a sales network covering all parts of the country and overseas markets.Therefore,CH's deep background provides technical and sales support for the research of lithium copper foil project.However,in terms of finance,the large amount of investment required for the project,the unstable price of raw materials,and the high price of the products,these factors have a great impact on the investment decisions of the project.Therefore,it is necessary to conduct financial feasibility studies on it.This paper first expounds the background significance of the research and summarizes the relevant literature at home and abroad.Then,the current situation of the industry where the project is located is analyzed,and the function and nature of the project are introduced.Then,the investment plan and production arrangement of lithium copper foil project are determined by field investigation.Then,according to the market competition and the advantages and disadvantages of CH Company,the sales revenue is predicted and the cost is calculated according to the production arrangement.Secondly,estimate the incremental cash flow for each year of the project and calculate the financial benefit index(NPV,MIRR,Dynamic payback period);Finally,the single factor sensitivity analysis and multi-factor sensitivity analysis are used to quantitatively estimate the risk of the project,and combining with the qualitative research of the company's strategy ? marketing ? production and organization management so as to put forward risk prevention measures.The results show that the NPV of the project is 99.196 million yuan,which is much more than zero;the MIRR is 14.43%,which is greater than the necessary rate of return of the project 10.24%;the dynamic payback period of the project is 5.38 years,which is less than the life of the project.Although the project has some risks,it is still controllable.Therefore,the investment of lithium copper foil project is financially feasible.