Analyzing and evaluating the results of the investment project for an phat steel structure factory

Paris Graduate School of Management Thai Nguyen University INTERNATIONAL EXECUTIVE MASTER OF BUSINESS ADMINISTRATION PROGRAM THESIS TITLE: ANALYZING AND EVALUATING THE RESULTS OF THE INVESTMENT PROJECT FOR AN PHAT STEEL STRUCTURE FACTORY Investor Place Total sum Land leasing square : An Phat Joint Stock Company : Khai Quang Industrial Zone – Vinh Yen – Vinh Phuc : 69.000.000.000 VND : 13.000 m2 Student’s name: NGUYEN QUANG HAI Intake I 11/2012 Investment project for An Phat steel structure factory CERTIFICATION MAKE SELECTION COMPANY PROJECT GRADUATION THESIS Name : An Phat Group Joint Stock Company Office Address: No Cu Loc street, Thuong Dinh Ward, Thanh Xuan District, Hanoi city Phone : (+84) 35569968 - (+84) 35569969 Fax : (+84) 35569959 Web site : www.anphatgroup.com Email : info@anphatgroup.com An Phat Group Joint Stock Company confirm: Nguyen Quang Hai is attending training programs of international master's degree in business administration selected PGSM now in graduate thesis entitled, “Analyzing and evaluating the results of the investment project for An Phat Steel Structure Factory” An Phat Group Joint Stock Company confirm all data used in the analysis of his thesis Nguyen Quang Hai is completely authentic and accurate Management company also highlights the practical value of this research AN PHAT GROUP JOINT STOCK COMPANY - DEPUTY DIRECTOR GENERAL : LE VAN CHUONG Students: Nguyen Quang Hai - ieMBA B01 Investment project for An Phat steel structure factory ACKNOWLEDGEMENTS To complete the high school program and writing this thesis, I have received the guidance, help and suggestions Your enthusiastic teacher Thai Nguyen University Thai Nguyen city First of all, I would like to send my deep gratitude to Dr Tran Van Binh, the Institute of Economic Management - University of Technology, Hanoi has spent a lot of time and diligence study guide and help me complete thesis Sincerely thank would like to thank the teachers, the teachers University of Management Paris France (PGSM), Thai Nguyen University, the training of the company organized a science and to teach and communicate knowledge is very precious and very practical in 12 subjects of the program, have created the conditions for me to study and complete the course At the same time, I also thank you brother, sister and leadership An Phat Group Joint Stock Company, the Department of Planning and investment, department of of Vinh Phuc tax facilitate our survey to essay writing data Sincere thanks members in Grades IeMBA.b01, the most enthusiastic comments when I talk and help me in the learning process and completion of this thesis Although I have tried to complete the thesis with all his enthusiasm and energy, but the inevitable shortcomings, look forward to the valuable contribution of you and teachers Ha Noi, November 2012 Student : Nguyen Quang Hai Students: Nguyen Quang Hai - ieMBA B01 Investment project for An Phat steel structure factory WORDS WARRANTIES I swear this is my own work The data and results described in the thesis is true and who never published in any other work Ha Noi, November 2012 Student : Nguyen Quang Hai Students: Nguyen Quang Hai - ieMBA B01 Investment project for An Phat steel structure factory TABLE CONTENTS Page FOREWORDS Title: Analyzing and evaluating the results of the investment project for An Phat Steel Structure Factory Rationale: Aims Research methodology Research data Organization Conclusion CHAPTER I 1.1 The general concept of investment projects 1.1.1 The concept of investment projects .4 1.1.2 Classification of investment projects 1.1.3 The periods of investment project 1.2 Content of feasibility studies 10 1.2.1 Feasibility study 10 1.2.2 The purpose of the feasibility study 10 1.2.3 Main contents of the feasibility study: 11 1.3 Finance and Economic analysis of investment projects 14 1.3.1 Investment identification 14 1.3.2 Estimating annual turnover of project 16 Students: Nguyen Quang Hai - ieMBA B01 Investment project for An Phat steel structure factory 1.3.3 Estimating the annual cost of the project 17 1.3.4 Tabulate the basic parameters of the project 18 1.3.5 Preparation of expected financial reports 18 1.3.6 Evaluation of the project 24 1.4 Sensitivity Analysis .31 CHAPTER II 33 2.1 The need for the construction of structural steel plant in the area 33 2.2 Introduction about the investor 33 2.3 Pursuant to the implementation of the project 34 2.4 Description of the investment project .35 2.4.1 Design capacity 35 2.4 1.1.Installed Capacity 35 2.4 1.2.Features .35 2.4.2 Technology 36 2.4.3 Location, area and scale construction 37 2.4.4 Equipment List 39 2.4.5 Construction Category .41 2.4.6 The total project construction and installation of equipment 44 2.5 The organizational model of production 45 2.5.1 The organizational model business 45 2.5.2 Forecast of labor 47 2.5.3 Expected production plan 48 2.5.4 Estimation on manufacturing cost and product price 50 Students: Nguyen Quang Hai - ieMBA B01 Investment project for An Phat steel structure factory 2.5 4.1.Cost estimates for the first five years: .50 2.5 4.2.Estimation of production costs: 51 CHAPTER III 52 3.1 The production plan and projected revenues, production costs .52 3.2 Plan to raise capital for the project 60 3.3 Plan of the interest payments and loan 62 3.4 Establishment of the project's cash flow table .64 3.5 Calculate indicators NPV, IRR, payback period of the project 66 3.6 Sensitivity analysis with the assumption 68 3.6.1 Costs raise by 5% 68 3.6.2 Revenue decreased by 5% 70 3.7 Conclusions on the feasibility of the project 73 3.8 Conclusions and recommendations 74 Students: Nguyen Quang Hai - ieMBA B01 Investment project for An Phat steel structure factory LIST OF TABLES Page Table 1: Regional climate project 38 Table 2: List of equipment 39 Table 3: The estimated capital construction work items .43 Table 4: Estimates of investment and construction equipment 44 Table 5: Structure of the apparatus and the number of employees 47 Table 6: The first 5-year cost estimate .50 Table 7: estimates of production costs .51 Table 8: Estimated revenue: 53 Table 9: Revenue for the first 15 years of operation from the corresponding with operation of the plant: (unit: Million VND) 53 Table 10: Cost of the average wage the first five years of production 54 Table 11: Depreciation of items in 15 years 55 Table 12: Cost of production for 15 years 57 Table 13: Fixed capital investment 60 Table 14: Mobile capital 60 Table 15: General investment 62 Table 16: Capital structure 62 Table 17: Interest payment plans and loans bank (unit: MillionVND) .63 Table 18: Cash flow of project (Unit: Million VND) 64 Table 19: The break-even point of the project 67 Table 20: Sensitivity analysis of the cost increasing by 5% (unit: Million VND) 68 Table 21: Sensitivity of the project while revenue fell 10% (Unit: MillionVND) 70 Students: Nguyen Quang Hai - ieMBA B01 Investment project for An Phat steel structure factory LIST OF ABBREVIATIONS CB: Being cash AR: Receivables AP: Payables AI: In Stock EBT: Earnings before tax EBIT: Earnings before interest and taxes payable NPV - Net Present Value: the net present value index Bi - Benefit: The benefits of the project Ci - Cost The cost of the project r: discount rate AV - Annual Value: Annual Target current value B / C - Benefit / Cost: The ratio of benefit / cost IRR - Internal Rate of Returns: the internal rate of return KH: Depreciation and amortization Bd: Maintenance PP - Payback method: return on investment time Fe: Iron Si: Silicon Mn: manganese P: Phosphorus S: Sulfur C: Carbon Cr: Chromium RC: Reinforced concrete IZ: Industrial YT: Health VLD: Working capital VCD: Fixed capital NVLC: Main materials NVLP: Material subDT: Revenue Students: Nguyen Quang Hai - ieMBA B01 Investment project for An Phat steel structure factory FOREWORDS Title: Analyzing and evaluating the results of the investment project for An Phat Steel Structure Factory Rationale: Investment activity is first and foremost decision affecting to the development and potential growth of the business Investment activities are focused through the implementation of investment projects Efficient investment projects will benefit long-term for business, helping businesses develop by leaps and bounds and meet fierce changes of the market The decision to invest or not depends on other factors The first factor is economic policy, on the basis of the law and the state economic policy to create fair playing field for all businesses The second is the competitive market factors, to survive and develop, products and services of the business have to meet needs of the market The third is the financial cost factors, changes in interest rates and tax policies affect capital structure and the capital of the enterprise Another factor that has a big impact is the fourth element of scientific and technical progress This factor will affect the choice of equipment, depreciation of fixed assets, etc The fifth factor is the analysis of the project, assessment of the feasibility of the project This one is seen as the most important, having Crucial influence on investment decisions Currently our country is in the process of industrialization and modernization The investment projects to build factories, industrial parks, export processing zones, etc is important because it produces local products to boost the domestic economy, reduces imports and create jobs for employees in the locality The construction project requires big capital investment, long payback, so the analysis and evaluation of its socio-economic effects must be very meticulous, careful and accurate new, bringing high performance for the investment An Phat Group Joint Stock Company, is a corporation doing business in multiple industries: industrial and civil construction, import and export, medical equipment, education, mining and mineral processing… to develop the field of Students: Nguyen Quang Hai - ieMBA B01 Investment project for An Phat steel structure factory Section The main material Raw materials and Year 31,110.0 Year 36,295.0 Year 46,665.0 Year 51,850.0 Year 51,850.0 Year 52,627.8 Year 53,417.2 Year 54,218.4 Year 55,031.7 Year 10… 55,857.2 933.3 1,088.9 1,400.0 1,555.5 1,555.5 1,578.8 1,602.5 1,626.6 1,651.0 1,675.7 1,555.5 1,814.8 2,333.3 2,592.5 2,592.5 2,631.4 2,670.9 2,710.9 2,751.6 2,792.9 3,294.0 3,294.0 3,294.0 3,294.0 3,294.0 3,343.4 3,393.6 3,444.5 3,496.1 3,548.6 625.9 625.9 625.9 625.9 625.9 635.2 644.8 654.4 664.3 674.2 500.0 500.0 500.0 500.0 500.0 500.0 500.0 500.0 500.0 500.0 2,417.3 2,715.0 3,275.4 3,517.2 3,473.0 3,472.1 3,448.1 3,443.7 3,490.7 3,538.4 1,015.2 1,140.3 1,375.7 1,477.2 1,458.7 1,458.3 1,448.2 1,446.4 1,466.1 1,486.1 41,451.2 47,473.8 59,469.2 65,412.3 65,349.6 66,247.0 67,125.1 68,044.9 69,051.5 70,073.1 6 6 6 6 6 6,908.5 7,912.3 9,911.5 10,902.1 10,891.6 11,041.2 11,187.5 11,340.8 11,508.6 11,678.9 auxiliary Fuel, electricity, water Salaries Insurance Short-term interest Marketing costs, transportation Expense management Total: Working Capital Turnover Working capital needs Students: Nguyen Quang Hai - ieMBA B01 61 Investment project for An Phat steel structure factory Total investment and capital structure are determined by equity capital and mobilize; medium and long-term loans and short-term working capital loans, total investment, capital structure and capital is defined as follows: Total investment of the project is 69.292 billion, of which:  Fixed capital : VND 59,292,000,000  Working capital : VND 10,000,000,000 Capital is defined as follows:  Own capital and mobilized : VND 18,000,000,000  Medium and long term loans: VND 46,292,000,0000  Short-term loans : VND 5,000,000,000 Table 15: General investment No Item Value ( VNĐ ) The total investment capital 69,292.0 I Fixed capital investment 59,292.0 Construction 43,905.7 Machinery, equipment and other costs 15,386.3 II Mobile capital 10,000.0 Table 16: Capital structure No Item Self and mobilized Long-term and mediumterm loans Short-term borrowings Value 18,000.0 Scale % Of fixed % Of total capital investment 26.0% 30.4% 46,292.0 5,000.0 3.3 Plan of the interest payments and loan Students: Nguyen Quang Hai - ieMBA B01 62 Investment project for An Phat steel structure factory Table 17: Interest payment plans and loans bank (unit: MillionVND) Item Year Year Year Year Year Year Year Year Year Year 10 46,292.00 46,292.00 41,423.11 35,055.43 27,691.45 20,043.55 8,436.22 - - - 0.00 4,868.89 6,367.68 7,363.98 7,647.90 11,607.32 12,692.65 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 5,555.04 5,555.04 4,970.77 4,206.65 3,322.97 2,405.23 1,012.35 - - - 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 Interest 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% Interest paid annually Total interest paid annually 500.0 500.0 500.0 500.0 500.0 500.0 500.0 500.0 500.0 500.0 6,055.0 6,055.0 5,470.8 4,706.7 3,823.0 2,905.2 1,512.3 500.0 500.0 500.0 Annual long-term loans Annual payment of principal 46,292.00 Interest Interest paid annually Annual short-term loans 5,000.00 Students: Nguyen Quang Hai - ieMBA B01 63 Investment project for An Phat steel structure factory 3.4 Establishment of the project's cash flow table Table 18: Cash flow of project (Unit: Million VND) Năm 10 11 12 13 14 15 51,000.00 59,500.00 76,500.00 85,000.00 85,000.00 86,275.00 87,569.10 88,882.70 90,215.90 91,569.10 92,942.68 94,336.82 95,751.87 97,188.15 98,645.97 revenue 10000 other revenues Capital investment 69,292.00 Fixed capital 59,292.00 10,000.00 Working capital Operating costs depreciati on and amortizati on 41256.9 47635.3 60223.5 66166.6 66103.9 67001.4 67879.5 68799.3 69805.8 70827.4 76967.1 78102.1 79254.3 80423.6 81610.6 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 2,927.00 2,927.00 2,927.00 2,927.00 2,927.00 Students: Nguyen Quang Hai - ieMBA B01 64 Investment project for An Phat steel structure factory 6,055.00 6,055.00 5,470.80 4,706.70 3,823.00 2,905.20 1,512.30 500 500 500 500 500 500 500 500 -777.60 1,344.00 6,340.00 9,661.00 10,607.40 11,902.70 13,711.60 15,117.70 15,444.40 15,776.00 12,548.58 12,807.72 13,070.57 13,337.55 13,608.37 -194.4 336 1585 2415.25 2651.85 2975.675 3427.9 3779.425 3861.1 3944 3137.145 3201.93 3267.643 3334.388 3402.093 -583.20 1,008.00 4,755.00 7,245.75 7,955.55 8,927.03 10,283.70 11,338.28 11,583.30 11,832.00 9,411.43 9,605.79 9,802.93 10,003.16 10,206.28 69,292.00 9,937.50 11,528.70 14,691.50 16,418.15 16,244.25 16,297.93 16,261.70 16,303.98 16,549.00 16,797.70 12,838.44 13,032.79 13,229.93 13,430.16 23,633.28 69,292.00 8817.6575 9076.7946 10263.474 10177.206 8934.7023 7954.0592 7042.041 4250.26 3646.776 3128.977 2021.529 1734.684 1488.524 1277.306 1899.996 69,292.00 60,474.34 51,397.55 41,134.07 30,956.87 22,022.17 14,068.11 -7,026.07 -2,775.81 870.97 3,999.95 6,021.48 7,756.16 9,244.68 10,521.99 12,421.99 interest Taxable income Corporate Income Tax aftertax income 10 cash flow 11 NPVn 12 Cumulativ e Profit Students: Nguyen Quang Hai - ieMBA B01 65 Investment project for An Phat steel structure factory 3.5 Calculate indicators NPV, IRR, payback period of the project Net current time The project's net present value is calculated as follows: n Bi NPV = T i=0 n - (1+r)i Ci - T i=0 (1+r)i Calculated in 15 years with a discount rate of 10% NPV = 41932 million VNĐ Internal rate of return NPV1 IRR = r1 + (r2- r1) NPV1-NPV2 According to calculations, the internal rate of recovery in the 15 years of the project is 0.1907295 % Students: Nguyen Quang Hai - ieMBA B01 66 Investment project for An Phat steel structure factory Breakeven point of the project Table 19: The break-even point of the project (Unit: Million VND) Item Year Year Year Year Year Year Year Year Year Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Revenu 51.000,0 59.500,0 76.500,0 85.000,0 85.000,0 86,275.0 87,569.1 88,882.7 90,215.9 91,569.1 92,942.68 94,336.82 95,751.87 97,188.15 98,645.97 51.777,6 58.156,0 70.160,0 75.339,0 74.392,6 74,372.3 73,857.5 73,765.0 74,771.5 75,793.1 80,394.07 81,529.15 82,681.25 83,850.64 85,037.57 18.020,6 18.562,1 18.971,2 18.550,4 17.604,0 16,743.7 15,376.4 14,418.5 14,546.7 14,676.8 18,768.15 18,984.77 19,204.64 19,427.81 19,654.32 33.756,9 39.593,9 51.188,8 56.788,6 56.788,6 57,628.5 58,481.1 59,346.5 60,224.8 61,116.3 61,625.92 62,544.38 63,476.61 64,422.83 65,383.25 53.299,8 55.482,6 57.338,1 55.891,8 53.040,3 50,427.3 46,290.5 43,389.3 43,757.8 44,132.0 55,700.60 56,332.98 56,974.92 57,626.56 58,288.05 104,5% 93,2% 75,0% 65,8% 62,4% 58.4% 52.9% 48.8% 48.5% 48.2% 59.9% 59.7% 59.5% 59.3% 59.1% e Costs The charge Variable costs Breake ven point D breakev en revenue Breakev en rate Students: Nguyen Quang Hai - ieMBA B01 67 Investment project for An Phat steel structure factory 3.6 Sensitivity analysis with the assumption 3.6.1 Costs raise by 5% Table 20: Sensitivity analysis of the cost increasing by 5% (unit: Million VND) Year Revenue 10 11 12 13 14 15 51,000.00 59,500.00 76,500.00 85,000.00 85,000.00 86,275.00 87,569.10 88,882.70 90,215.90 91,569.10 92,942.68 94,336.82 95,751.87 97,188.15 98,645.97 Other revenues Investme nt capital: 10000 69,292.00 +Fixed capital 59,292.00 + Mobile capital 10,000.00 CP annual operating 43319.75 50017.07 63234.68 69474.93 69409.1 70351.47 71273.5 72239.27 73296.09 74368.77 80815.5 82007.21 83217.02 84444.78 85691.13 amortizat ion 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 2,927.00 2,927.00 2,927.00 2,927.00 2,927.00 Interest 6,055.00 6,055.00 5,470.80 4,706.70 3,823.00 2,905.20 1,512.30 Students: Nguyen Quang Hai - ieMBA B01 500 500 500 500 500 68 500 500 500 Investment project for An Phat steel structure factory Taxable income -2,840.45 -1,037.77 3,328.83 6,352.67 7,302.21 8,552.63 10,317.63 11,677.74 11,954.11 12,234.63 8,700.22 8,902.61 9,107.86 9,316.37 9,527.84 -710.111 -259.4413 832.2063 1588.167 1825.55 2138.16 2579.407 2919.434 2988.53 3058.66 2175.066 2225.654 2276.96 2329.093 2381.96 -2,130.33 -778.32 2,496.62 4,764.50 5,476.65 6,414.47 7,738.22 8,758.30 8,965.58 9,175.97 6,525.17 6,676.96 6,830.89 6,987.28 7,145.88 -69,292 8,390.37 9,742.38 12,433.12 13,936.90 13,765.35 13,785.37 13,716.22 13,724.00 13,931.28 14,141.67 9,952.17 10,103.96 10,257.89 10,414.28 20,572.88 -69,292 7444.868 7670.38 8685.77 8639.142 7571.254 6727.830 5939.734 3577.691 3069.93 2634.23 1567.06 1344.85 1154.134 990.47 1653.956 -69,292 -61,847.1 -54,176.8 -45,490.9 -36,851.8 -29,280.6 -22,552.8 -16,613.1 -13,035.3 -9,965.40 -7,331.17 -5,764.11 -4,419.26 -3,265.12 -2,274.65 -620.70 CIT Profit after tax Project cash flow NPV n Cumulati ve Profit Students: Nguyen Quang Hai - ieMBA B01 69 Investment project for An Phat steel structure factory When the cost raises by 5%:  NPV = -620.70  With r = 0,15, NPV = 1111.228  With r2 = 0.2 NPV = -13 888.22  IRR = 0.154 3.6.2 Revenue decreased by 5% Table 21: Sensitivity of the project while revenue fell 10% (Unit: MillionVND) Students: Nguyen Quang Hai - ieMBA B01 70 Investment project for An Phat steel structure factory Year Revenue 10 11 12 13 14 15 48,450.00 56,525.00 72,675.00 80,750.00 80,750.00 81,961.25 83,190.65 84,438.57 85,705.11 86,990.65 88,295.55 89,619.98 90,964.28 92,328.74 93,713.67 Other revenues Investme 10000 69,292.00 nt capital: + Fixed capital 59,292.00 + Mobile capital 10,000.00 CP annual 41256.9 47635.3 60223.5 66166.6 66103.9 67001.4 67879.5 68799.3 69805.8 70827.4 76967.1 78102.1 79254.3 80423.6 81610.6 Depreciat ion and amortizat ion 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 4,465.70 2,927.00 2,927.00 2,927.00 2,927.00 2,927.00 Interest 6,055.00 6,055.00 5,470.80 4,706.70 3,823.00 2,905.20 1,512.30 500 500 500 500 500 500 500 500 Taxable income -3,327.60 -1,631.00 2,515.00 5,411.00 6,357.40 7,588.95 9,333.15 10,673.57 10,933.61 11,197.55 7,901.45 8,090.88 8,282.98 8,478.14 8,676.07 -831.9 -407.75 628.75 1352.75 1589.35 1897.2375 2333.2863 2668.3913 2733.4013 2799.3863 1975.362 2022.72 2070.744 2119.536 2169.018 operating CIT Students: Nguyen Quang Hai - ieMBA B01 71 Investment project for An Phat steel structure factory Profit after tax -2,495.70 -1,223.25 1,886.25 4,058.25 4,768.05 5,691.71 6,999.86 8,005.17 8,200.20 8,398.16 5,926.08 6,068.16 6,212.23 6,358.61 6,507.05 69,292.00 8,025.00 9,297.45 11,822.75 13,230.65 13,056.75 13,062.61 12,977.86 12,970.87 13,165.90 13,363.86 9,353.08 9,495.16 9,639.23 9,785.61 19,934.05 Cumulati ve Profit 69,292.00 7120.6744 7320.0832 8259.3669 8201.3532 7181.5057 6375.0933 5619.9911 3381.3589 2901.2688 2489.3412 1472.728 1263.82 1084.528 930.6821 1602.597 Revenue 69,292.00 62,171.33 54,851.24 46,591.88 38,390.52 31,209.02 24,833.92 19,213.93 15,832.57 12,931.30 10,441.96 -8,969.23 -7,705.41 -6,620.89 -5,690.20 -4,087.61 Project cash flow Students: Nguyen Quang Hai - ieMBA B01 72 Investment project for An Phat steel structure factory When the revenue decreases 5% :  NPV = -4087.61  With r1 = 0.1, NPV = 18978.91  With r2 = 0.15, NPV = -2456.89  IRR = 0.157 3.7 Conclusions on the feasibility of the project - Under normal conditions the investment project investment efficiency but efficiency is not high, in particular:  Net Present Value: NPV = 41932 million VNĐ  Payback period: T = years months  Internal Rate of Return: IRR = 19.07%  The annual contribution to the state budget of about billion  Create jobs for about 150 direct employees - However, in the case of risks, basing on risk analysis and forecast the impact of future, we can see:  When project revenues decreased 5% ineffective projects  When project costs increased by 5% ineffective Such projects not have the financial safety We recommend that investors take a number of measures to ensure financial security and increase efficiency projects such as: - Increase the lifespan of the project activity by altering the structure of machinery and equipment in order to increase profits - Take measures to accurately forecast the price to take measures to reduce the risks of a product discount… - Implement methods to save raw materials, negotiate to reduce and stabilize price Students: Nguyen Quang Hai - ieMBA B01 73 Investment project for An Phat steel structure factory 3.8 CONCLUSION AND RECOMMENDATIONS The thesis completes the following meanings: Provide readers to have a practical look in fact, at the efficiency of the project investment, so that the investor has the option for good project management Investors know the progress, the stage to raise capital in order to minimize interest loans for investment projects Disseratation has been completed on the basis of research, synthesis, analysis and evaluation of the basic theoretical knowledge learned in the MBA program, other relevant documents, together with the knowledge, experience of author during working time with An Phat joint stock company and a number of other units Under the thoughtful guidance of teacher Dr Tran Van Binh, these papers have been completed, reading the essays, the readers will find useful advices to be applied in investment management activities general and mineral processing projects in particular.The author hopes that the subject can add an objective perspective for An Phat joint stock Company believing in its right investment * Recommendations drawn from the study: The author strongly recommends that to avoid the unfortunate breakdown in future, draining assets of the state and the people, with the big project licensing authority before licensing investment, the the effectiveness of the project should be reassessed before the licensing decision Hanoi, Octorber 2012 Student : Nguyen Quang Hai Students: Nguyen Quang Hai - ieMBA B01 74 Investment project for An Phat steel structure factory Students: Nguyen Quang Hai - ieMBA B01 75 [...]... results in business the author chose the subject Analyzing and evaluating the results of the investment project for An Phat Steel Structure Factory as his thesis 3 Aims In this thesis, I apply the theory learned in the MBA program, the research material to analyze, evaluate, study the factors related to the effectiveness of the project and propose solutions guaranting for investment projects with efficiency,... revenue, cost and othes so that the project analysis person can easily find information Basing on the basic financial parameters, investment plans and operational plans of the project, the construction of the table financial planning is carried out to serve for the determination of the value of future cash flows of the project The financial analysis should be carried out using Microsoft Excel software,... see the difficulties and Students: Nguyen Quang Hai - ieMBA B01 11 Investment project for An Phat steel structure factory advantages, priority that the project will be responded to, the limitations which the project must comply + The situation of foreign trade and other relevant institutions such as the import and export, import and export taxes, exchange rate policy, the investment rules for foreigners,... project for An Phat steel structure factory Cost for management Cost for sale Total cost There are two methods that are often used to estimate the costs of projects: Method of calculating revenues percentages and method of spending as the plan Besides, there is another method which appears to be the combination of these two above - Table of profits and losses of the project: Profit and Loss plan table is... investment project for An Phat Steel Structure Factory Chapter III: The economic and financial analysis of investment projects Due to time constraints, though getting the dedicated guidance of the Instructor and the efforts of the author, the thesis can not avoid the shortcomings Hoping that the author could receive feedback from your teacher, and experts all friends 7 Conclusion Research is a real investment. . .Investment project for An Phat steel structure factory construction of industrial buildings, prefabricated steel building business in the North, focusing mainly on the key provinces of the North West economy zone Recognizing the importance of the analysis and evaluation of the effectiveness of investment projects for enterprises with the knowledge learned in the MBA program and research results. .. during the project life cycle To estimate the annual revenue of the project, it need to estimate the basic parameters of the design capacity, the annual rate of production the annual inventory, the unit price of the product as well as the change of prices in the future Students: Nguyen Quang Hai - ieMBA B01 16 Investment project for An Phat steel structure factory Turnover = Sales volume * price of products... If the project has a variety of plans removing each other, the option with the largest NPV is most financially valuable option Students: Nguyen Quang Hai - ieMBA B01 25 Investment project for An Phat steel structure factory - If the project plan with the same benefits, the plan with minimum cost of present value is financially worth * Advantages and disadvantages of NPV criteria - Advantages: Shows the. .. financial reports It is necessary to tabulate the cost of production or services, revenues, profit and loss table, expected balance sheet, revenue and expenditure balance table The financial statements help investors see the financial situation of the project and it is the source of data helps to calculate the indicators reflecting the financial side of the project - The investment plan table: shows the. .. depreciation and at the end of the project, the rest which is not depreciated value of the property - Repayment plan: For investment projects, financial cashflow refers only to loans and debt and ignore the mobilized capital stock and paying dividends shareholders Therefore, the project financial cash flow analysis is a reasonable way to help investors determine the date to be mobilized loans, costing financial