Feasibility study for the Al-Anbar cement project


The paper aims to study the economic feasibility of the proposed cement project in Anbar province with annual production capacity of one million tons, We applied many of the criteria of financial and economic feasibility studies of proposed like, the return on investment, payback period, net present value and sensitivity analysis. The results showed that the net present value of the project 174602486 dollars, the high positive value confirms the feasibility of the project. The rate of return Internal rate of 26% is appropriate, demonstrates that the project economically viable and that it is bigger than rate of interest. Sensitivity analysis Showed that most of the factors of the project is weak impact on the economic feasibility of the project factors (cash flow and useful lives) are the most influential factor on the profitability of the project, but the impact is very weak because the cash flow impact on the net present value in the case of falling by more than 53 %, and the useful life of the project if it affects it has dropped to less than four years, which is weak assumptions occur. Beside that project contributes to the reduction of unemployment , support balance of payments of Iraq and achieve savings in foreign currency up to $ 100 million annually, and contributes to the gross domestic product, up to $ 62 million annually