For air separation project investment is used domestically or imported equipment
Problems, it was observed that although the import of air separation plant investment high, but
Was little time to run the troubleshooting, so from a perspective of long-term operation
Speaking, the economy is greater than domestic air separation plant. Recent work and study
The process, found that there is a state tax on corporate income tax priorities
Preferential policy on investment in credit policy. According to the provisions of the understanding, the purchase of domestically produced
An air separation plant can get on the corporate income tax credits. I recognize
For, as in air separation projects to receive this offer, domestic air separation plant
The real economy is likely to exceed import equipment.
An investment credit policy
Credits, according to investment policies and regulations, persons engaged in the national industrial policy
Technological renovation projects of enterprises, with bank loans or corporate self-financing
The purchase of domestic equipment investment required for technological transformation projects, the amount of 40%,
Project equipment from the technological upgrading of enterprises over the previous year the year of acquisition of new
The increasing corporate income tax credit. Corporate annual investment credits for each of the
The amount of enterprise income tax shall not exceed the business year than the pre-purchase of equipment
Year, the amount of new corporate income tax.
If the tax year under the new corporate income tax credits, the
Amount of investment credits were not available in future years enterprises than on equipment purchase
Set the previous year in the new corporate income tax credit extension, but the arrival
To avoid the longest period of no more than 5 years. If the business equipment purchased before 1
Year loss, credit life of their investment profits realized by the first for the Mi
Make up losses to make up for income tax payable after credits can be used for domestic
Equipment investment.
This is the state in order to encourage enterprises to increase the technological transformation projects
Investment, speed up the renewal of equipment, the promotion of scientific and technological development and national
Industrial restructuring, and take the tax incentives for business investment.
These policies can directly reduce the corporate tax liability, reducing business
Burden, and this policy has also increased competition in domestic air separation unit
Advantage.
2 Domestic and imported air separation plant air separation plant economics
Comparison
For ease of understanding, the author the use of EXCEL software, reference to the text
Xian [1] of the data analyzed and discussed.
211 the original program
If you consider investing in credit policy in order to invest in a set of 15000m3 / h
An air separation plant, for example, air separation equipment investment side such as the use of domestic space grouped
Preparation, number of years in the future capable of reaching the largest capable of reaching the corporate income tax amounted to
20000 × 40% = 8000 Wanyuan. If we can fully take advantage of these excellent
Hui, domestic air separation equipment, amount of investment of only 120 million yuan. The
Import of an air separation plant is not income tax benefits.
Since many calculations involved in investment analysis to the financial function, as
The convenience of calculation, the author using Microsoft EXCEL software in NPV
And the IRR financial functions, checking the literature [1] the results and
In considering the tax benefits under the Ordinance, a series of calculations comparing the knot
Fruit Table 1.
Following EXCEL software in NPV and IRR Financial Functions
And in this case, the specific use.
N PV calculated using the financial function is NPV (rate, value1,
value2,?), but in actual calculation process, we need for processing. To
Option 1, for example, in net present value N PV formula to enter N PV
= C 2 + NPV (0108, C 3, C 4,?, C 23). Where
rate = 0108, value1 = C3 (second year), value 2
= C 4 (third year),?, Value21 = C 23 (20th
Two years), the program is enacted, a net present value NPV1 = 6880 Wan Yuan.
IRR financial functions using IRR (values, guess)
Calculations. Where, values = C2: C23 (expressed from C2 to C23
A continuous data). In most cases, does not need to letter
The calculation of the number of IRR to provide guess values. If omitted, guess, false
It is located 011 (10%). If the function returns an error value of IRR
"# NUM!", Or the outcome is not close to expectations, can be another
guess the value of a second try. The program IRR of 10% near the recoverable
To use the system default guess = 011, you can get the program one of the IRR1 =
11.14 thousand percent. Copy the formula, enter the program 2 data available
The corresponding NPV2 = 2804 million and IRR2 = 9178%, and the text
Xian [1] calculated the results are basically consistent.
Table 1 of the program all the cash flow, NPV and IRR comparison
Million
A B C D E F G
An annual program 1 program 2 program 3 program 4 program 5
2 investment in fixed assets 1 - 12500 - 10000 - 10000 - 10000 - 9500
3, investment in fixed assets 2 - 12500 - 10000 - 10000 - 10000 - 9400
4 operating cash flow 3 3405 2,427,313,050,944,727
5 operating cash flow 4 3405 2,427,313,050,944,727
6 operating cash flow 5 3405 2,427,313,050,944,727
7 operating cash Stream 6 3405 2,427,242,724,272,427
8 operating cash flow 7 3405 2,427,242,724,272,427
9 operating cash flow 8 3405 2,427,242,724,272,427
10 operating cash flow 9 3405 2,427,242,724,272,427
11 operating cash streams of 10-3405 2,427,242,724,272,427
12 operating cash flow 11 3405 2,427,242,724,272,427
13 operating cash flow 12 3405 2,427,242,724,272,427
14 operating cash flow 13 3405 2,427,242,724,272,427
15 operating cash flow 14 3405 2,427,242,724,272,427
16 operating cash flow 15 3405 2,427,242,724,272,427
17 operating cash flow 16 3405 2,427,242,724,272,427
18 operating cash flow 17 3405 2,427,242,724,272,427
19 operating cash flow 18 3405 2,427,242,724,272,427
20 operating cash flow 19 3405 2,427,242,724,272,427
21 operating cash flow 20 3405 2,427,242,724,272,427
22 operating cash flow 21 3405 2,427,242,724,272,427
23 operating cash flow 22 3405 2,427,242,724,272,427
24 Net Present Value NPV 6880 2804 4482 9168 9348
25 Internal Rate of Return IRR 11140% 9178% 10196% 14179% 15112%
212 tax incentives under the new program
In considering the factors that preferential tax policies, the author can also be square
Case of 3,4,5.
Program 3: Program 1,2 provides corporate income tax rate was 33%,
This implicit assumption: Enterprises purchased equipment, the previous year, business investment purchase
Home-building companies in the two years after adjustment by the tax authorities to verify the
No loss, otherwise the third year of profits after tax to be paid. Because
For the Under the regulations, if an enterprise at a loss, then the profits generated by the first
First fill the first 5 years of tax owed. The extension of this assumption, and thus a
Step that the air separation equipment for the enterprises to increase profits, and that the resulting
More than just the acquisition of the previous year income tax starting from the third year, then the
The third, fourth, fifth annual cash flow should be (11178 - 8048 --
1000) × (1 - 0%) + 1000 = 3130 Wan Yuan. From the sixth year
Degrees began to restore the income tax rate of 33%, then the cash flow for 2427
Million. This program was N PV 3 = 4481180 and the IRR 3 =
10,196%.
3, we can see from the program, companies enjoy the preferential policies in the 3-year
, The reduction of income tax (11178 - 8048 - 1000) × 33% ×
3 = 703 × 3 = 2109 million, there are 58.91 million yuan of preferential no charge
Sub-use, this is due to be considered only from a single project, income
Consider only gas product revenue. In fact a Taiwan air separation plant commissioned
Will bring revenue in other areas, such as iron and steel enterprises ASU
Production will increase steel output and so on. In the third, fourth and fifth year,
Enterprises due to an air separation plant to bring production of gas products other than income,
Thereby increasing the income tax, but also from the investment of domestic air separation unit credit
The amount of the deductible, then the program may be 4, the program 5.
Scenario 4: The optimistic algorithms, 8000 million dollars all in 3 years
The average credit in the amount of additional income tax, the set arrived in 3-year average of
Free, then the annual cash flow: (11178 - 8048 - 1000) ×
(1 - 0%) + (8000 / 3 - 703) + 1000 = 50.94 million yuan,
Arrived in an air separation plant in which the income tax returns 703 yuan / year, other
Related products to increase the income tax 8000 / 3 - 709 = 1964 yuan / year,
Finally be regarded NPV 4 = 9168 Wanyuan, IRR 4 = 14179%.
Program 5: If the corporate income tax in the first year over the previous year
The acquisition of the year before, although the air separation plant is not put into production, but also
Received a credit from the first year, assuming 5 years, respectively, the amount of credit
500,600,2300,2300,2300 million, the first and second year
Investment of 500,600 yuan arrival, after three years of annual cash flow as follows:
(11178 - 8048 - 1000) × (1 - 0%) + (2300 --
703) + 1000 = 47.27 million yuan, with the calculation of available EXECL
N PV 5 = 9348 Wan Yuan, IRR 5 = 15112%.
3,4,5 in the program, domestic air separation plant to invest in income tax
Of all credits, of which 21.09 million yuan program three credits, less than
To the maximum, for the conservative algorithm; Program 4,5 to reach 80 million
Yuan, are optimistic about the algorithms. 4,5 can be seen from the program,
Domestic air separation plant by using some or all tax credits, that is,
So that the proportion of 40% did not run out, it is entirely possible to make domestic air
Sub-investment in equipment is better than importing economy ASU 11.14 thousand percent.
3 Conclusion
In the case of a single project, regardless of operating conditions, you can use
The standard formula for calculating, according to investment and cash flow out of the project
NPV and IRR, to evaluate investment projects an air separation plant economy.
However, the actual business will not survive in such a unique environment. The
To, air separation plant using domestic or imported, from the enterprise funds,
Business and tax and other aspects to consider.
If the investment side air separation using domestic equipment, available in early
Only 40% of the investment amount for the purchase of equipment within the next five years, income
Tax credits offer an opportunity, which is sensitive to the initial investment capital investment
Fang and domestic manufacturers in terms of air separation plants are beneficial. Side
Surface reflects the state enterprises to speed up the support of technological transformation, on the other hand
Also increased the competitiveness of domestic electrical and mechanical equipment. For domestic investment ASU
The project company, in order to obtain the 40% preferential income tax credit,
A precondition is to ask well-run and corporate income tax-funded enterprises
Reporting plan properly for the opportunity to implement cost-effective; while ASU system
Making enterprises, need to try to shorten the project construction period, in order to fight for investors
More tax breaks. The joy is that, domestic air separation equipment and technology of water
Ping gradually move closer to the international level, if coupled with tax concessions and
Policy, domestic air separation plant has also become a good choice.
References:
[1] Sheng Xin-jiang. An air separation plant project investment economic analysis [J]. Cryogenic technology
Surgery, 2005 (4): 527.
[2] Wang Tao. Modern financial and taxation [M]. Wuhan: Huazhong University of Science and Technology Publishing
Society, 2001.