7 7 refer to above data analysis and background

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7. 7. Refer to above data analysis and background information, the listed company suffering two consecutive annual losses should apply the project. According to ST policy in China, it requires that for the listed company that reported two consecutive annual losses should henceforth be put into ST statue. Under the ST status, the company would be restricted by harsh and strict requirements, such as auditing report semi-annual and being unenviable to raise additional capital. Even worse, the company may be suspended from trading on the stock exchanges market if it reports one more loss. As a company manger, we prefer to prevent the company being suspended and maintain the daily trading of company, which means that we need to generate the maximum return in the project next year. On the basis of project free cash flows statement, it shows that the cash inflow in project 6 is $2,200 which is the largest return among the 8 projects. NPV is not the necessary criteria for measuring the decision under this condition, but the priority is to present the positive figure in the following financial statement and offset the loss.
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