Financial Feasibility Analysis Research Articles

Financial Feasibility Analysis of XYZ Company Market Expansion Plan to Kalimantan

XYZ Company, a B2B manufacturer of Songkok in Gresik, East Java, plans to expand its market by establishing a new distribution warehouse in Banjarmasin, Kalimantan. This strategy aims to leverage the growing demand for Songkok in Kalimantan, which has a significant Muslim population. The primary goal of this study is to evaluate the financial feasibility of purchasing versus renting the new warehouse for this investment plan. The financial feasibility analysis was conducted in multiple stages. Pro forma financial statements were constructed for both scenarios, incorporating historical data of the company's financial statements, industry benchmarks, and growth assumptions from management interviews. Free Cash Flow to the Firm (FCFF) and terminal cash flows were calculated using the Weighted Average Cost of Capital (WACC). Capital budgeting techniques were then used to evaluate financial feasibility, including Net Present Value (NPV), Internal Rate of Return (IRR), and Discounted Payback Period. Risk assessment was performed through sensitivity analysis and Monte Carlo simulation. Results indicate that the renting scenario, with an initial investment of IDR 242 million, has a higher NPV and IRR than the purchase scenario, which requires an initial investment of IDR 944 million. The renting scenario also offers a faster-discounted payback period of 2 years and one month, making it more feasible. Risk assessment shows moderate risk, with an 83% probability of achieving a positive NPV. The financial feasibility analysis recommends renting the new warehouse in Banjarmasin. This option provides a quicker payback period, higher NPV and IRR, and positive risk assessment results. Investing in this project will enhance XYZ Company's market presence in Kalimantan, cater to the growing demand for Songkok, and achieve sustainable growth and profitability.

Financial Feasibility Analysis Of Urban Waste Processing As Refused Derived Fuel For Cement Company

Financial Feasibility Analysis Of Urban Waste Processing As Refused Derived Fuel For Cement Company

Profitability and Financial Feasibility Analysis of Hydroponic Vegetable Business at Bahagia Farm

Purpose: This study aims to explore the profitability and financial feasibility aspects of hydroponic farming. Methodology: The study was conducted at Bahagia Farm, located in Bahagia Village, Babelan District, Bekasi Regency, from May 2023 to June 2023. The Non-Probability Sampling technique with a Saturated Sample (census) approach was used for sample selection. Data collection involved primary information from interviews, direct observations, and original documents, analyzed through profitability and financial feasibility analysis. Results: The results indicate that the farming business is profitable and feasible, with profitability indicators such as a Gross Profit Margin of 75.21% and a Net Profit Margin of 48.83%. Findings: The financial analysis shows a Net Present Value (NPV) above the neutral point at Rp553,272,251, a Net B/C ratio of 2.63, an Internal Rate of Return (IRR) of 41.82%, and a payback period of 2 years, 4 months, and 18 days. Novelty: This research provides detailed insights into the financial viability and profitability of hydroponic farming, enhancing understanding of its economic potential. Originality: The study offers a comprehensive analysis of economic benefits and financial metrics, contributing to knowledge on sustainable agriculture practices. Conclusions: Hydroponic farming at Bahagia Farm is profitable and financially feasible, making it a viable agricultural practice. Type of Paper: Empirical Research Article

Economic Viability and Financial Feasibility of Secondary Processing Unit of Turmeric in Chamarajanagar District of Karnataka, India

Turmeric is an important commercial crop with both domestic and international demand facing challenges due to the absence of organized processing units at production centres. Addressing this gap requires a thorough analysis of the economic viability and financial feasibility of establishing turmeric processing units to empower stakeholders and foster agricultural advancement in the study area. The study was conducted in Chamarajanagar district of Karnataka, by collecting primary data on establishment and annual processing costs and secondary data on market prices of turmeric rhizome and powder. Financial feasibility analysis revealed positive Net Present Value (NPV) of ₹1,714.36 lakh and ₹623.56 lakh, Benefit Cost Ratio (BCR) of 2.37 and 1.76, Internal Rate of Returns (IRR) of 76 and 57 per cent at current and constant market prices, respectively. The findings showed that the establishment of turmeric processing units are both economically viable and financially feasible. Emphasizing this potential through extension systems can empower farmers to maximize benefits through mechanized value addition. These insights provide valuable guidance for entrepreneurs, Farmers Producers Organizations, Self Help Groups and cooperatives facilitating informed decisions on establishing small-scale turmeric processing units.

Financial Feasibility Analysis of the Beef Cattle Fattening Business

Financial analysis is an activity of assessing and determining rupiah units on aspects that are considered feasible from decisions made in the business analysis stage, and the results of the analysis are used as basic parameters in determining the feasibility of a business. The objective of this research was to determine the financial feasibility of the beef cattle fattening business in Balikpapan city. The study employed a survey method within the North Balikpapan subdistrict, in which 40 respondents were selected through purposive sampling. Criteria for respondents included ownership of at least two beef cattle with a rearing period exceeding one year. The financial feasibility analysis used several key indicators, including the break event point (BEP), net present value (NPV), benefit cost ratio (B/C ratio), internal rate of return (IRR), and payback period (PP). Based on the study calculations, the BEP was IDR 9.676.911; NPV (9.15%) was IDR 1.017.779.514; NPV (14.15%) was IDR 952.403.118; B/C ratio was 2.7; IRR was 87%; and PP was 0.37 years. According to these results, it could be concluded that the beef cattle business in the North Balikpapan subdistrict, Balikpapan city, was feasible.

Leverage Strategies of Real Estate Investment Trusts and Real Estate Operating Companies

This paper employs empirical data in three major Asian real estate markets - Hong Kong, Japan, and Singapore, from 2001 to 2021, to study the leverage strategies of two related types of real estate companies – real estate investment trusts (REITs) and real estate operating companies (REOCs). The business model of the former must adhere to a real-estate-focused investment strategy while the latter undertakes a whole range of real estate development activities including land acquisition, financial feasibility analysis, construction, investment and asset management to redevelopment and disposal, and are not subject to the REIT rules with respect to tax transparency, earning distribution, real estate holding and leverage limit. We find that REOCs use 18.96% more debt than REITs after controlling for the agency and market risks, dividend yields, and property sector, country, and year fixed effects of firms; dividend payout has no effect on the leverage strategies; and high tax ratio increases the debt usage of REOCs relative to REITs. We also analyze the liquidation costs and business uniqueness effects. We find real estate value to total firm value ratio, as a proxy of liquidation cost, has negative effects on debt ratios for both real estate firms. Due to their uniqueness, REOCs with a high concentration of rental revenue stream are more vulnerable to liquidation risks, and thus more likely to have lower debt ratio. REITs however tend to have higher debt usage as rental incomes enhance cash-flow liquidity.

Analisis Finansial Tambak Ikan Bandeng (Chanos chanos) di Desa Dualaus. Kecamatan Kakuluk Mesak. Kabupaten Belu

The research was conducted for one month. namely on June 1 - July 1. 2023. located in Dualaus Village pond. Kakuluk Mesak District. Belu Regency. The purpose of the study was to determine the characteristics of milkfish farmers and the level of feasibility of milkfish pond business financially carried out by farmers in Fatuketi Village. as well as how to overcome obstacles in milkfish farming business. In this research. the methods applied include the use of Observation and Interview methods as a way to obtain primary and secondary data at the research site. The collected data were then analyzed through Characteristic Analysis and Feasibility Analysis. The results obtained by the characteristics of respondents include most of the ages of 40-60 years as much as (60%). with an average elementary school education as much as (60%) and the characteristics of respondents based on business experience mostly 21-30 years as much as (60%) who have run a milkfish rearing business that can produce 1094.8kg in one cultivation. The milkfish farming business in Dualaus Village is considered feasible to continue based on the analysis of the average profit of 37.263.000 break event points (BEP) with details of BEP (Kg) 2.086.45 kg and and BEP (RP) Rp. 20.963.64 / kg and (R / C) = 2.67. While the obstacles faced in Dualaus Village include the lack of water supply in the dry season in cultivation activities and the lack of water quality measuring instruments. So the solution in dealing with this is to ensure that the water level is at the minimum limit during the dry season and does not exceed the maximum limit in the rainy season. and provides water quality measurement tools and pest and disease management.
 
 Keywords: Financial feasibility analysis. milkfish

Investment Analysis of New Fire Truck: A Case Study of Purchase or Rent Option

PKT, as a petrochemical company with high potential hazards, prioritizes emergency preparedness and response by complying with regulations and standards. In addition to serving its own needs, PKT’s fire and rescue department also provides emergency services to four neighboring companies through an annual fee cooperation scheme. To enhance the emergency response services, PKT conducted an evaluation and identified the need for an additional fire truck unit with up-to-date technology. To determine the most suitable option, PKT is considering purchasing or renting the new fire truck units. A financial modeling analysis was conducted using income from health and safety services. The financial feasibility analysis, considering parameters such as NPV, IRR, and discounted payback period, resulted in a feasible outcome. The Purchase option exhibited better economic value, with a predicted NPV of Rp. 569,276,495, an IRR of 11.56% (higher than the discount rate of 10.5%), and a discounted payback period of 9.35 years. Sensitivity analysis, using tornado and spider charts, revealed that the annual fee from clients or joint venture companies had the most significant impact on the project’s financial performance, followed by manpower costs. A 20% increase in annual fees led to a significant increase in NPV Rp. 6,639,013,466, while a 20% decrease resulted in a significant decrease in NPV (−Rp. 5,500,460,477). Similarly, a 20% increase in manpower costs resulted in a decreased NPV of Rp. −3,500,609,667. Based on the sensitivity analysis, the two significant factors influencing the purchase option were identified as the annual fee and manpower cost. Recommendations that are also put forward for this study are identification to anticipate increases in labor costs and to keep manpower costs under control. The increase in manpower costs must be accompanied by an increase in income. Exploring opportunities to attract additional clients, particularly companies in the industrial complex that do not yet have an agreement with PKT, is also advised. By implementing these recommendations and ensuring cost control, PKT can optimize its emergency response services and maintain a financially viable operation.

Dry Port Financial Feasibility Analysis Model

The sea transportation system that is interconnected and provides value for loading and unloading services at the main port of Tanjung Priuk is already over capacity. The establishment of a dry port in Tangerang Regency is expected to facilitate the flow of export and import goods, streamline logistics costs, and solve the dwelling time problem that occurs. The plan to establish the Tangerang Dry Port requires an analysis of the financial feasibility of the investment. The method used to solve this problem is using the Internal Rate of Return (IRR), Net Present Value (NPV), and Payback Period. This feasibility analysis calculation was carried out during pre-construction and after construction so that these calculations can be used as reference material in every decision-making, especially those related to the finances of Tangerang Dry Port. The feasibility analysis calculation uses 3 (three) scenarios, namely for optimistic conditions the IRR value is 28.8%, for moderate conditions the IRR value is 13.6%, and for pessimistic conditions the IRR value is 7.2%. For optimistic conditions the NPV value is 1,716.7 billion, for moderate conditions the NPV value is 697 billion, for optimistic conditions the NPV value is 255 billion. For optimistic conditions the payback period is 6.87 years, for moderate conditions the payback period is 9.26 years, and for pessimistic conditions the payback period is 11.2 years. From the results above, optimistic, and moderate conditions are the most feasible scenarios for developing the Tangerang Dry Port.

ANALISIS KELAYAKAN BUDIDAYA SARANG BURUNG WALET DI DESA BADAK BARU KECAMATAN MUARA BADAK (Studi Pada Usaha Sarang Burung Walet Pak Nassarudin)

Currently, in the Muara Badak sub-district, many people have built swallow nests. This area is suitable for swallow cultivation because of its location close to the beach, nature that is still free from pollution, and close to forests that are still wide open. The high selling price and large capital make it difficult for wallet farmers who are already cultivating or prospective new Sawang wallet farmers to make a decision to invest. Ironically, many end up stopping their business in the middle of the road because they are considered a failure. Therefore, it is necessary to do a business feasibility analysis before starting a business. Sampling was carried out purposively, namely Mr. Nassaruddin's Wallet Nest Business with the consideration that it had been in operation for the last twelve years until 2023 and had a three-level wallet bird's nest building by calculating the NPV, Net B/C, IRR, and PP values. The results of this study are that the yields obtained can reach tens of millions of rupiah, In the financial feasibility analysis based on investment criteria with a factor discount of 10%, it can be produced as follows: NPV value > 0, which is IDR 580,147,000.00, Net B/C value > 1, which is 5.12, IRR value > i, which is 29.21%, and PP value is 6.758 years. These results indicate that Pak Nassarudin's Swallow's Nest Business is feasible to implement or continue.

Introducing Gliricidia sepium as a Fuel Wood in Rubber Smallholdings of Sri Lanka: A Case Study in Kalutara District


 A pilot project has been initiated to introduce Gliricidia sepium with Hevea brasiliensis under three different spatial arrangements ((i.)8'×27', (ii.)8'×40, and (iii.)88'×60’) as a fuel wood to improve the income status of rubber smallholders in Kalutara District by Rubber Research Institute of Sri Lanka in 2018. Primary data were collected through a questionnaire survey and field observations. The financial analysis was done for one hectare of smallholding. Certain assumptions were made in the financial feasibility analysis as financial analysis was done for 30 years giving consideration to the 30 year life span of rubber. Costs and benefits were discounted at 10% discount rate as practiced by the Department of National Planning to obtain 2019 market prices. The farm gate prices of 1kg of rubber and Gliricidia were considered as LKR 280.00 and LKR 4.00. The cost for hired labour was considered LKR 1,500.00 per day. Period of intercropping of Gliricida under rubber in the 88'×40' and 88'×60' models was considered as 30 years and in the 88'×27' model, it was considered as eight years. Financial feasibility of models was tested using the indices of Net Present Value (NPV) and Benefit Cost Ratio (BCR). A qualitative SWOT was conducted to identify the strengths, weaknesses, opportunities and threats relevant to introduction of Gliricidia as an intercrop in rubber plantations based on a thorough documentation review and on the opinions of Rubber Extension Officers. From the three models introduced, the highest fuel wood value can be obtained by intercropping Gliricidia with rubber under the spacing of 88'×60'. NPV for growing gliricidia with rubber under three different spatial arrangements, (i.)88'×27', (ii.)88'×40' and (iii.)88'×60' would be LKR 0.74 million, LKR 5.47 million and LKR 5.89 million respectively. The values obtain for BCR for growing gliricidia with rubber under three different spatial arrangements, (i.)88'×27', (ii.)88'×40' and (iii.)88'×60' would be 1.37, 2.26 and 2.27, respectively. All fuel wood growing models indicated positive NPV and BC Ratios were greater than one, suggesting that these introduced models are economically viable. Although there are no established market channels available for fuel wood especially in the smallholder rubber sector of Sri Lanka, there is a demand for Gliricidia which is fulfilled through adhoc markets. Also, development of sustainable supply chains through setting up of Pilot Biomass Energy Terminals with the objective of collection and distribution of fuel wood under the Project of Promoting Sustainable Biomass Energy Production and Modern Bio-Energy Technologies has widened the opportunity of using Gliricidia as a promising fuel wood species Gliricidia with rubber has the potential to improve income generation of rubber smallholders substantially especially during the immature stage of rubber and provide a solution to overcome uncertainty in rubber prices and low productivity of rubber lands.
 
 Keywords: Fuel wood growing models, Rubber farming

The comparative financial feasibility analysis and the environmental impacts of sugarcane-based bioethanol production in South Africa

The objective of this paper was to determine the financial feasibility and environmental implications of bioethanol production from sugarcane in South Africa. The financial feasibility objectives was achieved using two capital budgeting techniques, namely, the Net Present Value (NPV) and Benefit-Cost Ratio (BCR) under four scenarios considerations: all sugarcane is used for biofuel production (I), all sugarcane destined for the sugar export market is used to produce bioethanol, II), All sugarcane is crushed into cane juice which is then transported into the refinery (III) and IV) Export designated sugarcane is transported by farmers to the refinery in the form of a cane juice. The environmental implications were determined using the Input-output and multiplier analysis. The NPV and BCR) results indicated that it is not feasible to produce bioethanol from sugarcane without a government subsidy. The production of sugarcane-based bioethanol however had environmental benefits as it was estimated to results to an average Green House Gases (GHGs) emission reduction of 28% related to petrol, of which 84% of the GHGs emission savings was from Carbon Dioxide (CO2). For bioethanol production to be financially feasible the financial support from private investors and government is recommended in subsidising the cost of feedstock.

PENGENALAN PENGUKURAN KELAYAKAN FINANCIAL PADA UMKM PD PUTRI DI PGC JAKARTA TIMUR

The financial feasibility measurement introduction training conducted by the Community Service team had the main objective of providing assistance to PD PUTRI's Small and Medium Enterprises (SMEs) in conducting a comprehensive evaluation of the financial feasibility of their development business. The training process covered several important aspects, including investment and production cost analysis, cost of goods sold, and business feasibility criteria such as Break Even Point (BEP), Net Present Value (NPV), Payback Period (PP), Internal Rate of Return (IRR), and Profitability Index (PI). In addition, in the context of SME development, careful planning requires serious consideration regarding the addition of working capital. The allocation of working capital by SMEs is crucial in providing the technology, equipment, and facilities and infrastructure needed to run the business optimally. Financial feasibility analysis is a key instrument in assessing whether the planned business can provide adequate profits and whether it is economically viable. Within the framework of raising working capital, aspects such as capital utilization efficiency, investment strategy, and risk management are also a key focus. This training aims to equip PD PUTRI's SME team with the knowledge and skills needed to design and evaluate a development strategy based on an in-depth financial feasibility analysis. As a result of the training, PD PUTRI SMEs are expected to make more informed decisions and optimize their working capital management. In addition, it is also expected to improve business competitiveness through a better understanding of the financial factors that influence business viability and sustainability

Analisis Kelayakan Finansial dan Keberlanjutanusaha Ternak Kambing Kampung Notoharjo Kecamata Trimurjo Kabupaten Lampung Tengah Provinsi Lampung

Purpose: The aim of this research is to analyze the financial feasibility of goat farming in Notoharjo Village, Central Lampung Regency, Lampung Province Method: The sampling method uses Purposive Sampling and the analytical method used in the research is Financial Feasibility Analysis with the investment criteria Net Present Value (NPV), Net Benefit Cost Ratio (Net B/C), Gross Benefit Cost Ratio (Gross B/C), Internal Rate of Return (IRR), and Payback Period (PP). Results: The results of the financial analysis show an NPV value of IDR 37,552,311.47, Net B/C 6.09, Gross B/C 2.79, IRR 45% and PP 3 years 5 months. Limitations: The business that is financially measured is in the form of goat livestock carrying out rearing activities that are ready to be sold Contribution: The goat farming business that is being run is profitable and sustainable so that farmers who want to start a goat farming business can consider the feasibility analysis that has been analyzed which is used as a reference for beginner farmers.

ANALYSIS OF TECHNICAL AND FINANCIAL FEASIBILITY STUDY OF PROJECT DEVELOPMENT RENOVATION OF KAPUAS INDAH MARKET PROJECT AND PUBLIC SERVICE MALL

Each district or city is required to establish a Public Service Mall for services to the community, therefore the Government wants to make the Kapuas Indah Market building multifunctional which has been neglected for a long time by having a Public Service Mall on the 3rd floor of the Kapuas Indah Market with a total building area of ± 7,380m2. The construction of this renovation will certainly have various impacts so it is necessary to carry out a feasibility study in terms of technical and financial aspects.Analysis of the technical aspects carried out is based on the Basic Building Coefficient (KDB) of 78.79%, Building Floor Coefficient (KLB) of 2.36, Green Area Coefficient (KDH) of 21.20%, Parking Space Requirement of 581SRP, and Accessibility The locations reviewed are in accordance with applicable regulations and guidelines that the technical aspects of the renovation of the construction of the Kapuas Indah Market and Public Service Mall can be said to be feasible or have met the requirements in the construction of a project. While the results of the financial feasibility analysis show that the renovation project for the construction of the Kapuas Indah market and the Public Service Mall is feasible (profitable) because the results obtained using the Net Present Value (NPV) obtained a value of Rp. 10,223,725,624 > 1, the value of the Benefit Cost Ratio (BCR) of 1.1409 ³ 1 , the Internal Rate Of Return (IRR) is 7.78% > MARR, and the Payback Period (PP) value is 22 years 11 months 14 days < the investment plan age is 30 years. The sensitivity results show that the feasibility assessment of financial parameters is very sensitive to the IRR parameters for increasing expenses and decreasing revenue costs.

Business Model Innovation of Off Grid Public Electric Vehicles Battery Swap Station with Solar Powered

Energy transition is Indonesia's national agenda to maintain energy security and realize the use of green energy. The use of electric vehicles (EVs) is one strategy to maintain primary energy security and support the reduction of carbon emissions. To support the growth of the EV ecosystem, Public Electric Vehicle Battery Swap Stations (Stasiun Penukaran Baterai Kendaraan Listrik Umum, SPBKLU) have been developed and installed in several locations. Currently, SPBKLU still uses electricity sources from the PLN (Perusahaan Listrik Negara, Indonesia’s electricity state-owned company) grid, where the majority of the PLN grid itself still relies on gas and coal power plants. Hence, this work proposed a PV-powered battery swap station and presented the Business Model Canvas and financial and SWOT analysis. Two business model schemes are proposed, the BPCOSP (Battery Provider, Cabinet Owner, Solar PV Provider) and BPCOSL (Battery Provider, Cabinet Owner, Solar PV Lease) schemes. From these two business schemes, the results of the financial feasibility analysis for the SPBKLU swap rate were obtained at IDR 18,241 for the BPCOSP scheme and IDR 21,500 for the BPCOSL scheme. From a SWOT analysis perspective, the BPCOSP and BPCOSL business schemes have the opportunity to increase the Solar PV business value chain and support government programs in achieving Net Zero Emissions. However, there are still weaknesses in terms of tariffs which are still not economical compared to the fuel costs of conventional two-wheeled vehicles and the current SPBKLU swap tariff which still uses electricity from the PLN grid.

Geotechnical Preliminary Design of Onshore Wind Turbine Foundations

A simplified geotechnical design procedure for foundations of onshore wind turbines is often beneficial because it can provide the types and sizes of foundations required to perform financial feasibility analysis of a project, and can also be used for preliminary design. This study presents a simplified method for designing onshore gravity-based foundations based on limited required data, namely, loads acting on foundations, data provided by manufacturers, and soil properties. The detailed design issues that may be essential for the final design are also discussed. A flowchart of the design process is also presented to visualize the geotechnical design of such foundations. The required calculation procedures can be easily carried out either through a series of spreadsheets or simple hand calculations. An example problem explaining the design of onshore wind turbine foundations was presented to demonstrate the proposed calculation procedure. The data used for the calculations were obtained from the literature. The proposed flowchart provides a quick way for the preliminary design of foundations of onshore wind turbine foundations. The foundation system obtained from the preliminary geotechnical design was numerically modeled using Plaxis 3D software. The global stability of the foundation system under Ultimate Limit State (ULS) loads and soil pressure developed under the foundation were calculated. The soil pressure beneath the foundation under Serviceability Limit States (SLS) loads and the total settlement and rotation of the foundation were calculated. The results obtained from the Plaxis 3D software and those obtained from the preliminary design were in agreement.

Integration of Solar Photovoltaic Plant in the Eastern Sumba Microgrid Using Unit Commitment Optimization

Integrating renewable energy sources (RES) into island microgrids is usually done to provide a cost-effective electricity supply. The integration process is carried out by scheduling generating unit operations with a unit commitment (UC) scheme to ensure low system operating costs. This article discusses developing a UC optimization method for integrating solar photovoltaic plants in Indonesia’s Eastern Sumba microgrid power system. The scope of this study is the optimization algorithm of the UC, which consists of a priority list (PL) for the UC stage and an economic dispatch (ED) that relies on a genetic algorithm (GA) to minimize total operating costs (TOC). The results show that the PL-GA algorithm performs better than the extended priority list (EPL), and combinations of genetic algorithm and Lagrange, by applying continuous problem dispatch and improved binary GA hourly dispatch to meet ramping constraints. The application of RES incentive programs, such as carbon taxes and incentives for RES generation in calculating the TOC, shows an improvement in the financial feasibility analysis of the internal rate of return (IRR) and net present value (NPV) of actual projects in Indonesia.

Analisis Kelayakan Finasial Produksi Jamu Beras Kencur Skala Rumah Tangga

Financial feasibility analysis is carried out to determine the financial feasibility of a product produced by industry, both large-scale industry and household-scale production. This research aims to obtain a calculation of the financial feasibility analysis of the kencur rice herbal drink product produced by the community on a household business scale. Aspects of financial feasibility analysis calculated in this research include COGS, BEP, R/C Ratio, NPV, IRR and PP. The results of the financial feasibility analysis show that the kencur rice herbal drink product is feasible to produce on a household scale or on a small scale. This is based on: (a) Cost of Production (HPP) of IDR 3,426; (b) selling price is IDR 6,500/bottle; (c) unit BEP of 16,255 and price BEP of IDR 105,655,630; (d) NPV with a positive value of IDR 524,143,499; (e) IRR for positive NPV is 60,390 and negative NPV is -287,375 which shows a higher figure compared to the bank interest rate, namely 212%; (f) R/C ratio of 1.90; (g) Payback Period which is shorter than the life of the project, namely 5 months.

Analysis of the Benefits of SAP S/4 HANA Cloud IT/Is Investment in the Case of PT XYZ

PT XYZ is one of the largest telecommunication companies in Indonesia. In 2020, PT XYZ implemented a digital transformation to increase its excellence by investing in industry telecommunication and information systems (IT/IS) enterprise resource planning software called SAP (System Application and Processing) S/4 HANA Cloud. The study aims to analyze the benefits of these IT investments made in PT XYZ. The results are carried out using the Comparative Analysis of Financial Statements followed by Business Value and Financial Feasibility Analysis and the Cost Benefit Analysis (CBA) method between 2018 and 2021. It can be revealed that the SAP S/4 Hana Cloud investment benefits the company's operations, which are identified in the form of 5 sub-categories that fall into required categories based on Ranti's Generic IT/IS Business Value.