May I ask how to determine whether an investment in a project is viable?
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May I ask how to determine whether an investment in a project is viable? A project requires an investment of 1 million yuan, all of which is borrowed at an interest rate of 10%, and it can operate for 10 years. Earning 200,000 per year means that, on the surface, the investment will be recouped in 5 years. May I invest? If it’s a technical improvement project that requires an investment of 100,000 and can save 20,000 in costs per year, should we go ahead with it? Please, experts, give me some advice!! Thank you!
Investing is not that simple. It is necessary to conduct technical and economic analyses, estimate investment costs and capital utilization rates, calculate the return on investment, assess market share and potential customers, and prepare at least one \"Project Feasibility Report\".
It’s already quite clear – can’t you give a conclusion?
At least three points: first, technical feasibility; second, economic feasibility; third, industrializability