Abstract
When the high-tech enterprise expands its capacity due to the enormous financing demand, it can expand with joint venture besides with its own investment. By joint venture manufacturing, the enterprise can reduce the risks of investment and short-term capital expense. It also can expand capacity to increase its competitive ability. This thesis is going to analyze the capacity expansion investment decision processes of high-tech enterprises with the constraints of cost of capital, cost of production and cost of capacity acquisition. From the perspective of valuation, by using discounted cash flow method, we develop three different models of relative process including: 1.Evaluative model of capacity expansion. 2. Evaluative model of capital structure. 3. Evaluative model of share holding. Simulation method is using in this article to solve the relative models, and evaluate the impact of net present values under different situations by using sensitivity analysis.We hope the evaluative models developed in this thesis can provide quantitative models to assist the enterprise increase its values when making the decision of capacity expansion.