Abstract
One form of entertainment that is currently being developed and in demand by the people of Jakarta and its surroundings is karaoke. This study aims to determine the results of the investment assessment of Karaoke Taxi using Capital Budgeting techniques in knowing the level of investment feasibility. The results of calculations with the Net Present Value method value of Rp. 92,061,946,333 with an initial capital of Rp. 80,000,000,000. While based on the feasibility analysis using the Profitability Index, the Karaoke Taxi business project got a value of 2.15, this result exceeds the number 1. Based on the feasibility analysis using the Internal Rate of Return a value of 40.18 percent was obtained. For the feasibility analysis using the Discounted Payback Period, the result of the Karaoke Taxi business project will return in the year 3,872, the return of investment is faster than required by the company (4 years).
Highlights
Jakarta, the capital of Indonesia, is the most populous city in Indonesia
The focus of research in this study is: calculations using the Capital technique bBudgeting consisting of Net Present Value (NPV), Profitability Index (PI), Internal Rate of Return (IRR), and Discounted Payback Period
Based on the feasibility analysis using Net present Value, with a required rate of return of 10%, the Karaoke Taxi company gets a value of Rp. 92,061,946,333 with an initial capital of Rp. 80,000,000,000
Summary
That many people in Jakarta feel bored with their busy daily routine and need entertainment. This is an opportunity to build a different entertainment place business in Jakarta. In connection with the problem of population density, Jakarta city traffic is increasingly congested every year, so that people are quite reluctant to travel to places of entertainment far from where they live. Business opportunities to take advantage of congestion in Jakarta and surrounding areas by using the entertainment business (Sunarsi, Kustini, Lutfi, Fauzi, & Noryani, 2019)(Hariyono, Akib, & Rifdan, 2018; Ismail, Sulur, Akib, & Salam, 2016; Rengifurwarin, Akib, & Salam, 2018; Saggaf, Akib, Salam, Baharuddin, & Kasmita, 2018; Wenda & Akib, 2015)
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