Study On The Improvement Of Financial Feasibility Analysis Report Of NS Cold Chain Logistics Project

NS cold chain logistics project is a rare good project from the policy,industry,location analysis.It's a move to achieve the Group's strategic objectives,but NS cold chain logistics project financial feasibility analysis report shows that the project from the financial Point of view is not feasible.Its net present value is negative and its internal rate of return is less than the project discount rate which shows that the acceptance of the project will damage the interests of the company.Is it exactly that the project really impracticable? Or the financial analysis of the project is unreasonable that led to financial indicators results do not work? If the analysis is not feasible,then where is the problem? How to improve it?Based on the characteristics of NS cold chain logistics project,this paper studies on its financial feasibility analysis report and tries to improve its financial feasibility analysis report which makes the enterprise's decision more scientific and the analysis result more convincing.Therefore,this paper studies the financial feasibility analysis report of NS cold chain logistics project according to the idea of "current situation-problem-countermeasure-influence".The results show that the financial feasibility analysis report of the NS cold chain logistics project uses the same period of bank loan interest rate to replace the project discount rate,which confuses the financing capital cost and the investment capital cost.Because the purpose of the analysis is to evaluate the value of the project itself rather than the whole investment and financing analysis,the investment system should be independent of the financing system for analysis;Cash flow estimates of the project are used indirect method which is a large workload,professional too strong,lack of intuitive and other issues.In addition,there is an unnecessary financing plan analysis in the financial feasibility analysis report,and even the cash flow in the financial feasibility analysis of the project included the load interest.The valuation of the land resources is also measured at historical cost.In view of its existence,this paper puts forward the improvement measures:using the BAPM model which is most suitable for the project to estimate the capital cost of the project;in the cash flow estimation,the direct method is used to replace the indirect method.The unnecessary analysis of the financing plan is deleted,the investment analysis is independent of the financing analysis.In other words,the report only to evaluate the value of the project itself,so the improvement of the present cash flow estimates removd the loan interest.The land cash flow which is owned resources used its current price which is opportunity cost.Compared with the capital cost and cash flow estimation before and after the improvement,it is found that using the BAPM model estimates the capital cost of the project is more scientific and is more operable comparing with the relative risk superposition model.In addition,the BAPM model makes up the capital asset pricing model whose premises is that capital markets are effective.The direct method simplified the estimation process.And it is more beneficial to play non-financial professional knowledge,improving the accuracy of cash flow estimates.The table of the direct method is so intuitive that facilitating management decision-making.In the impact on the decision-making results,The former unreasonable financial feasibility analysis led enterprises abandoned the project which the internal rate of return is high,the net present value is positive and the dynamic payback period reached the standard.Looking at the general project,the unreasonable financial feasibility analysis may also led enterprises to accept the project which the internal rate of return is low,the net present value is negative and the dynamic payback period do not reach the standard.Therefore,the improvement of the project is benefical to make investment decision-making more scientific,reduce the workload of enterprises,improve the level of project management.All of this shows that the improvement is great significant.The significance of this paper is to improve the financial feasibility analysis report of Y Company's NS cold chain logistics project so that to improve the scientific of Y project decision-making process and the management level of the project.In addition,the analytical method used in this paper can provide reference for the financial analysis of other projects.