Financial Feasibility of Modification Workshop Case Studies: Be-Modified

Abstract

The purpose of this study is to determine the location of the custom workshop business using the criteria of NPV, IRR, PBP, PI and B/C. This research method uses a field research model with the right procedure to use the net present value method, internal rate of return, payback period, profitability index and benefit cost ratio to determine the custome workshop business. The results of the criteria obtained are that NPV>0, IRR is 29.4%, PBP is 2.75 years, PI is 1.1.48 and B/C is 1.1. This level of achievement uses the world every day, there must be activities in the custome workshop to achieve the criteria. The criterion that becomes the dominant factor is the occurrence of an increase in the profitability index. This is a criterion that states there is an increase in the benefits of the specified investment value. What causes an increase in benefits is that assets and production facilities can experience functions that are more suitable for the way they are used.