Net Present Value Of Rp Research Articles

ANALISIS INVESTASI PADA GEDUNG BARU PASAR MARDIKA MILIK PEMERINTAH DAERAH PROVINSI MALUKU

Buildings are an important element in the development of an area and play a significant role in people's lives, so they become attractive investment objects. The availability of buildings, especially markets, affects the smooth running of people's trade facilities and the improvement of people's welfare. The construction of the Mardika Market New Building in Ambon City is expected to facilitate buying and selling transactions and provide jobs. This study aims to analyze the feasibility of market development investment by reviewing the financial aspect. The research method used in this study is a quantitative calculation method, by knowing the investment cost, calculating annual income and expenses, then conducting a feasibility analysis using the Benefit Cost Ratio (BCR), Net Present Value (NPV), and Payback Periods (PP) methods. The results of the analysis show that the Mardika Market New Building, which covers four floors with a total area of 20,400 m² and a capacity to accommodate 2,061 traders, has a total budget of Rp. 132,185,886,068, with a construction period of 480 days. From the calculation results, BCR 1.08, NPV Rp. 10,108,469,676, and PP 13 years, 2 months, 1 day were obtained. So it can be concluded that a BCR value greater than 1, the investment is considered feasible. In addition, NPV has a positive value, meaning that the investment project is considered feasible. The project has a payback period of 13 years.Keywords:Benefit Cost Ratio, Building Investment, Mardika Market, Net Present Value, Payback Period

ANALISIS KELAYAKAN USAHA SAYURAN HIDROPONIK DI KOTA BANJARBARU KALIMANTAN SELATAN

Hydroponics comes from two Greek syllables, namely hydro which means water and ponos which means power. The definition of hydroponics is cultivating plants without using a planting medium in the form of soil which is replaced with water and other media are added such as gravel, sand or white cork. Based on the background and problem formulation that has been put forward, the aim of this research is to analyze the feasibility of the hydroponic business. Hydroponik farmer Banjarbaru based on non-financial aspects and analyzing the feasibility of the hydroponics business. Hydroponik farmer based on financial aspects. This research was conducted in Landasan Ulin District, Banjarbaru City, South Kalimantan Province. This research was chosen purposively for the reason that Banjarbaru City, especially Landasan Ulin District, has many hydroponic businesses. Research data collection was carried out from May 2024 to June 2024. After that, an analysis was carried out regarding financial aspects consisting of costs and income along with profits. Hydroponik farmer is analyzed using ROI (Return on Investment), NPV (Net Present Value), IRR (Internal Rate of Return), Net B/C ratio, PP (Payback Period), and BEP (Break Event Point). Based on the results of the analysis and discussion, this research is concluded as follows: From a non-financial aspect, Hidroponik FarmerBanjarbaru has been said to be feasible to run, provided that environmental aspects must be improved. Handling of production waste must be managed better, not just piled up at the back of the garden. From a financial aspect, Hydroponik farmer has been said to be feasible to run because it has an ROI value of 24.17%, an NPV of Rp. 79,557,052, IRR of 18.36 %, Net B/C ratio of 1.78, Payback Period of 6 years, 1 months, 16 days, BEP price of Rp. 14,557.60 per kilogram and production BEP of 4.571 per year

Floating solar power plant planning based on electricity price fluctuations in Towuti, south Sulawesi

A company located in South Sulawesi, intends to mitigate emissions from the Power Plant by constructing an environmentally friendly alternative, namely the Floating Solar Power Plant (FSPP), in Towuti. The development plan involves a feasibility analysis for each configuration of the FSPP, considering technological, economic, and environmental criteria. The selection of the preferred configuration is determined using the Analytical Hierarchy Process (AHP) method, based on input from experts. According to this method, the chosen configuration is the on-grid non-battery Floating Solar Power Plant, with a Net Present Value of Rp. 1,431,159,245,752, an Internal Rate of Return of 9.46%, a Payback Period of 8.916 years, a Profitability Ind ex of 1.299, a system efficiency of 21.56%, a carbon footprint of 35,003 kg CO2, and an emission reduction of 9,136,808,273 kg CO2. Decision analysis, involving open and abandonment scenarios based on fluctuations in industrial electricity prices, was conducted using Monte Carlo simulation, yielding a volatility value of 31.2%. The real options analysis recommends abandonment in the twentieth year, with a decision success potential of 38%, based on the results.

Analisis Kelayakan Investasi Usaha Peternakan Ayam Guna Memenuhi Kebutuhan Telur di UD. Hadhita Jaya Makmur

Feasibility Analysis of Investing in a Chicken Farming Business to Meet the Need for Eggs which aims to determine the feasibility of a business. In an analysis of the feasibility of establishing a business, it can be carried out through several aspects, namely a monetary perspective, a special perspective, a market perspective using several methods, namely Draft Budget (RAB), Net Present Value (NPV), Net Benefit Ratio (NET B/C ) Internal Rate of Return (IRR), Payback Period (PP) and). This analysis produces data that shows the RAB of the feasibility of UD's business investment. Hadhita Jaya Makmur amounting to Rp. 1,470,669,000, with an NPV of Rp. 347,561,231 IRR is 43%, then the business PP is for 2 years, and the NET B/C is 3. According to the existing analysis regarding feasibility here it can be concluded that investment in the UD.Hadita Jaya Makmur business has met the feasibility of business investment, because has a positive NPV value, higher IRR on funding costs, relatively short PP, and larger NET B/C and is financially profitable for this business.

Formulation and selection of blue economy operational business strategy using Montecarlo Simulation and Multi Criteria Decision Making

The Cirebon Government has provided guidelines for the establishment of mangrove ecotourism aimed at reducing the level of mangrove damage in Cirebon, which has reached 75%. One of the newly established mangrove ecotourism sites in January 2023 is the “Kasih Sayang Mangrove Ecotourism Area.” This tourism destination focuses solely on the natural beauty of the mangrove ecosystem, generating revenue from entrance tickets and parking fees. Therefore, a business operational strategy is needed to increase income and the number of visitors. The strategy design is based on the Internal Factor Evaluation (IFE) Matrix, External Factor Evaluation (EFE) Matrix, Internal-External (IE) Matrix, and the General Strategy of Blue Economy, resulting in three alternative strategies: Mangrove Planting Scheme for Tourists, Paddling Attractions for Tourists, and Utilization of Mangrove Trees as Souvenirs. The selected alternative strategy, using the Monte Carlo Simulation and Multi-Criteria Decision-Making approach, is the Paddling Attractions for Tourists, with an average Net Present Value of Rp 92,210,01, an investment of Rp 544,298,000, an additional 5 local workers, and an estimated 14,598 kg of waste.

Feasibility Analysis of Smelter Grade Alumina (SGA) Project Development at PT. X

Abstract: Indonesia has a wealth of promising natural resources in the form of minerals and coal such as bauxite. Considering that the government is planning to stop bauxite exports and increase domestic processing or downstreaming. So it is necessary to carry out a factory financial feasibility analysis for processing bauxite into alumina or Smelter Grade Alumina (SGA) at PT.X. Feasibility analysis using a reference capacity of 1,000,000 tons of alumina. The parameters used to determine the financial feasibility analysis in alumina production at PT. X are Net Present Value (NPV), Internal Rate Return (IRR), Payback period (PP). Based on the results of the analysis research, it was obtained that the total cost of CAPEX (Capital Expenditure) that had to be spent was Rp. 7,057,514,558,158 and the total OPEX (Operational Expenditure) costs that must be incurred is Rp. 1,479,733,686,519 with a Net Present Value of Rp. 208,752,623,349, the Internal Rate of Return is 15%, and the Payback Period is 8 Years and 3 Months, so the project is feasible to run.

Price Identification And Financial Feasibility Study of Hydroponic Agriculture Iot Solution Launch Project at PT XYZ

Since 2015, the Internet of Things technology has grown significantly, reaching over 400 million users by 2022 in Indonesia. Recognizing the potential, PT XYZ, an innovative Indonesian telecommunications company, intends to launch an IoT solution for hydroponic agriculture. The launch project requires an initial investment of around Rp 500 million. Given that amount, PT XYZ aims to determine the selling price using a value-based pricing strategy and assess the project's financial feasibility and risks before proceeding. Primary and secondary data will be utilized in this research to determine the customer's willingness to pay (WTP), Capital budgeting cash flow, which includes the hypothetical price of IoT, calculating the weighted average cost of capital (WACC), free cash flow to the firm (FCFF), and terminal value. The study used various capital budgeting techniques, such as net present value (NPV), profitability index, payback period, internal rate of return (IRR), and Excel's goal seek feature, to determine the IoT solution's pricing. A risk analysis using sensitivity and Monte Carlo simulations have conducted. The research finds that the present value of benefits, or WTP, for the IoT solution, is Rp 90,708,238. Considering PT XYZ's targeted internal rate of return of 20%, the determined selling price is Rp 20,120,408, which lies within the customer's WTP, making the project feasible. Capital budgeting techniques show a payback period of 4.08 years, an NPV of Rp 3,424,935,505, and a profitability index of 8.21 over five years, indicating positive outcomes. However, the sensitivity analysis reveals that a change in product price, cost of goods sold, and salary expenses will significantly impact the NPV, resulting in a 12.69% risk, with profitability remaining high at 87.31%. In conclusion, PT XYZ's hydroponic agriculture IoT solution launch project is considered feasible, considering potential risks and mitigation strategies.

Drafting a Business Plan for Brass Instrument Reparation named BrassON in Yogyakarta

The purpose of this research is to draft a business plan for brass instrument reparation named BrassON. The brass instruments reparation business is a business that can fix any damage to any type of brass instrument. In Yogyakarta, there is no business that focuses on brass instrument reparation. Therefore, it requires a business plan for brass instruments reparation so that the business can run well. Before drafting the business plan for brass instrument reparation BrassON, a competition analysis of the industry is conducted to know the market situation for brass instrument reparation in Yogyakarta. The formulation of the mission, vision, marketing plan, operation plan, human resource plan, and financial plan of brass instruments reparation business adapted to market conditions brass instruments reparation. Based on data obtained from questionnaires, there are positive responses and interest from potential customers. BrassON presence in Yogyakarta as reparations services of brass instruments is expected to be a solution to the problem is not the presence of service brass instruments reparation in Yogyakarta. The initial investment spending used for the establishment BrassON is Rp 423.554.000. Net Present Value of Rp 145.998.845, Internal Rate of Return of 24 percent, and a payback period of 2.2 years. Based on financial analysis, the brass instrument reparations business BrassON is eligible to run.

Analisis Nilai Tambah Dan Finansial Pengolahan Tepung Menjadi Pie Kelor Bali

The development of the agricultural sector needs to diversify agricultural products into a product, namely Moringa pie which has added value, in addition to serving a large market it is necessary to patent a product by establishing a processing plant which is the existence of the Moringa pie product. The development of the moringa pie agro-industry needs to be studied in terms of added value and finance. This research was conducted at PT Bali Agro Investama, Penyaringan Village, Mendoyo District, Jembrana Regency. The location selection was done by using purposive sampling method based on certain considerations. The data analysis used is a quantitative method, namely added value and investment criteria. The results showed that (1) the added value of the moringa pie processing was classified as high, namely Rp. 697,725.42 with a value added ratio of 37.03%, (2) The results of financial analysis such as Break Even Points (pieces) were 355,043 (pieces) and Break. Sales Even Point (rupiah) IDR 710,086,624.03, Net Present Value IDR 3,402,121,393.90 without financing or with bank financing, Net B / C 3.12 without financing if using bank financing Net B / C value 3.70 . Furthermore, the Internal Rate of Return obtained a return rate of 78.43% without financing, if using bank financing the IRR value was 89.36% and the short Payback Period was 20.37 months without financing, and with bank financing to 23.04 months. (3) The results of the sensitivity analysis of the 15% sales discount obtained a Net Present Value of Rp. 159,977,262.90 without financing or bank financing, Net B / C value of 1.10 without financing, and with bank financing of 1.13. Internal Rate of Return 27.28% without financing and with bank financing of 27.59%. While the sensitivity of operating costs increased by 15%, obtaining a Net Present Value of Rp. 914,489,765.54 without financing or bank financing, Net B / C of 1.57 without financing and with bank financing of 1.73, the Internal Rate of Return obtained a value. 39.35% without financing and with bank financing 41.52%. The results of these calculations meet the investment eligibility criteria so that the moringa pie processing business is feasible.

ANALISIS KELAYAKAN PENAMBAHAN MESIN CETAK DI PERCETAKAN GRAND DEPOK PRINTING

This research is done to find out whether it is feasible or not if this research is done to find out whether it is feasible or not if the Grand Depok Printing printing business adds investment in the procurement of new printing presses. The data used is to use an estimate of initial capital investment analysis. The analysis tool used is the Payback period (PP) method. Net Present Value (NPV), Internal Rate Of Return (IRR), and Profitability Index (PI) and investigate aspects in business feasibility studies namely Legal Aspects, Market and Marketing Aspects, Technical / Operations Aspects, Financial Aspects, Management / Organization Aspects, Social Economic Aspects, Environmental Dumpak Aspects.
 
 The results of calculations obtained are Payback period for 7 Months and 20 days, Net present value of RP. 8,545,174,145, Internal Rate Of Return of 22.15%, and Prifitability Index of 1,541. Therefore, it can be decided that the procurement of new printing presses at The Grand Depok Printing business in Verbena Shophouse, Grand Depok City, Jl. Boulevard Grand Depok City, Tirtajaya, Kec. Sukmajaya, Depok City, West Java 16412 is worth running..

Feasibility Analysis on the Business Plan of Herb Medicines at Ginsanjaya Pharmacy

The objectives of this study are analysis about feasibility on the business plan of herb medicines at Ginsanjaya Pharmacy, which are: feasibility analysis of industry and market, feasibility analysis of products and services, feasibility analysis of financial; and to decide the business plan of herb medicines at Ginsanjaya Pharmacy is feasible or not feasible to be realized or operated. The study methodologies used are: (1) The feasibility analysis of industry and market such as: market and marketing aspects, industrial environment aspects, economical – social – legal –environmental aspects, by qualitative desciptive analysis. (2) The feasibility analysis of products and services such as: technical and technological aspects, operational management aspects, human resources aspects, by qualitative descriptive analysis. (3) The feasibility analysis of financial aspects such as: payback period, present value, internal rate of return, profitability index, break even point, by quantitative descriptive analysis. The results of feasibility analysis on the business plan of herb medicines at Ginsanjaya Pharmacy were such as: (1) The feasibility analysis of industry and market such as : market and marketing aspects were feasible, industrial environment aspects were feasible, economical – social – legal – environmental aspects were feasible, therefore the industrial and market aspects were feasible. (2) The feasibility analysis of products and services such as: technical and technological aspects were feasible, operational management aspects were feasible, human resources aspects were feasible, therefore the products and services aspects were feasible. (3) The feasibility analysis of financial aspects such as : payback period 3.49 years < project period 5 years ; net present value Rp 329,019,000 > 0 (positive) ; internal rate of return 27.17 % > bank credit rate 5.58 % ; profitability index 2.04 > 1 ; break even point of 5th year Rp 718,743,000 or 28.94 % ; therefore the financial aspects were feasible. Therefore the final conclusion of study was that feasibility analysis on the business plan of herb medicines at Ginsanjaya Pharmacy was passed, was feasible to be realized and operated. Keywords: break even point, feasibility analysis, internal rate of return, net present value, payback period, profitability index.

Feasibility Study Fishing Tour Project in Dongkal Village, East Pondok Jagung, North Serpong, South Tangerang City, Banten

The purpose of writing a feasibility study paper on fishing tourism business is to assist the village government in realizing increased economic growth for the community around village. The author also wants to carry out several feasibility measurements in a project development by analyzing, viewing and measuring several measurement indicators using the Net Present Value method, Internal Return Rate, Cost Benefit Ratio, Return on Investment, and Return on Investment Period. Based on the results of the analysis of the financial feasibility test with this method, the authors use a loan interest rate of 11% per year to operate. From the calculation results obtained a positive number of Net Present Value of Rp. 493,276 million, the value of the Internal Rate of Return 12.1388% > 11% (Interest Rate), the value of the Cost Benefit Ratio 1.5165 > 1, with a payback period of 3.0825 years < 5 years (Bank loan repayment period).

Menakar Kelayakan Bisnis Kripik Lidah Buaya

This research aims to find out whether or not the business of the Aloe Vera Kripik Business is produced by Alove.it team. The non-financial feasibility aspects used in the analysis of this research are aspects of production and marketing. As for the financial aspects used, namely payback period analysis tools, Net present value, Internal Rate of Return, and Profitability Index, to determine whether an effort is worth doing. The results obtained in this study that the Aloe Vera Kripik Business Alove.it from the results of the production aspects of this Alove.it business is declared feasible because the location is on the roadside, strategically profitable, and easily accessible to consumers, the technology used is cutting-edge and the manufacturing process is simple. From the marketing, aspect is stated quite well and decent, with high-quality products, affordable prices, and make good use of the role of social media where everyone can more easily buy it, the breadth of distribution reach, and advertise offered by the owner is enough to make consumers familiar with this product. In terms of finances shown that this Aloe Vera Kripik Business is said to be worth developing because the value results are above the minimum standard of investment. By generating Payback period for 21 days, net present value of Rp 2,284,416.5, Profitability Index value of 26.8%, and, Internal Rate of Return of 56%.

Analisis Kelayakan Usaha Penangkapan Ikan dengan Jaring Rampus (Bottom Gill Net) di Desa Bandengan Kecamatan Mundu Kabupaten Cirebon, Jawa Barat

Research was conducted from March to May 2020 at Bandengan Village, Mundu District, Cirebon Regency, West Java. Bandengan Village is a village located on the outskirts of the panatai with the majority of the population being fishermen. The fishing gear used by the fishermen of Bandengan Village includes rampus nets (Bottom Gill Net). Based on the results of the financial analysis including business income analysis, revenue and cost balance analysis, business feasibility analysis, net present value, internal rate of return (IRR) and payback period, the analysis of business income was obtained Rp. 22,346,000, - income and cost balance analysis 1.79, business feasibility analysis with Net Benefit 2.92, with a discount rate of 13%, the value of the catch in years 1 to 10 is Rp. 50,736. 000, -, at the end of the fifth year the remaining machine value is Rp. 1,000,000, -, and at the end of the project value of Rp. 9.500.000, -, consisting of boats Rp. Rp. 2,500,000, -, rampus fishing gear of Rp. 500,000, -, and a machine of Rp. 1,000,000, -, in order to obtain a Net Present Value of Rp. 125,798,041, -, Internal Rate Of Return (IRR) 47.46% and pay back period of 2.86 years. Thus, the use of rampus net fishing gear in Bandengan Village, Mundu District, Cirebon Regency is feasible to be developed, in addition to the higher quality catch, it is also included in environmentally friendly fishing gear.

STUDI KELAYAKAN TEKNIS DAN FINANSIAL PEMBANGUNAN APARTEMEN ORLIN GRAND SUNGKONO LAGOON SURABAYA

Apartment business is a business carried out by a developer with the aim of obtaining a return on investment. In developing this apartment business, a feasibility study is an important aspect in a construction project in order to see the impact of investment on increasing opinions between the project development plan and the realization after the project is implemented. Grand Sungkono Lagoon Apartment which will be built on an area of ​​4,516 m² with a building area of ​​1,209 m2. Investment in the construction of this project requires a large cost, so it is necessary to do a technical feasibility analysis, financial feasibility analysis and sensitivity analysis to determine the feasibility of this apartment construction project. The required data were of basic design, work unit, and Surabaya HSD 2019. The parameters used for financial feasibility study are Payback Period (PP), Net Present Value (NPV), Internal Rate Return (IRR), and Benefit Cost Ratio (BCR) methods, based on From the results of the technical feasibility study for the Orlin apartment itself obtained KDB of 26.77%, KLB of 14.10%, so the analysis is said to be appropriate to the feasibility parameters. Present Value (NPV), Internal Rate Return (IRR), and Benefit Cost Ratio (BCR). After calculating the financial analysis, the construction of Orlin Apartment is said to be feasible by producing MARR = 11.20%, an investment cost of Rp 557,367,280,654 is obtained; NPV of Rp. 207,599,344,809; BCR of 1.52; PP for 2 Years 1 Month; and IRR of 39.16%. The Sensitivity analysis with parameter of unit selling price and interest rate, If the selling price of Tower Orlin apartment units is reduced to 40%, the NPV will be negative and at an interest rate of 39.16% or can be declared inappropriate.

Studi Kelayakan Water Pumped Energy Storage Sebagai Penyimpanan Energi PLTS Mandiri Pada Daerah Terisolir

Research and development on the implementation of renewable energy is growing rapidly, especially about photovoltaic (PV) and energy storage. Water pumped energy storage (WPES) is an alternative storage media in a standalone solar power system because of its longer technical life than chemical storage types, such as batteries. To assess the feasibility of WPES implementation as an energy storage in the standalone solar power plant system, the process of sizing the system components needs to be carried out by considering technical and economic aspects. This research will discuss the sizing process of standalone solar power system using WPES with closed loop reservoir systems and its economic analysis. The sizing process is carried out by the method of power balance, energy balance, and volume balance while economic viability is seen from the capital cost, O&M cost, and revenue from electrical energy absorbed by the load. In this study, the daily load profile with energy demand of 79 kWh and peak load of 4.36 kW. The analysis shows the need of 56 kWp PV system, 3800 m³reservoir capacity with 20m head. The calculation shows the technical efficiency of the system is 28.2%. From the economic analysis, the sistem’s payback period is 24 years, assuming the reservoir technical age is 50 years with net present value of Rp 2,072,823,731.86 and return of investment 105%.

Financial Feasibility Study of Hydro Power Plant on A River in West Sumatra

As a part of nation worldwide, Indonesia set the target for the renewable energy source. The renewable energy should be 23% of the energy mix generation that mentioned in the RUPTL 2019 -2028. PT. XYZ as the company which have the responsibility regarding the electricity in Indonesia should work hard to find and invest in renewable energy source. In West Sumatra, there is one river that can be potential to create the hydro power plant that expected to generate as much as 296.104.624 kWh. The construction of the hydro power plant itself will be started from the scratch that obviously will cost much money. The company should consider if it is wise to invest in constructing the hydro power plant or not. This research aims to analyze the financial feasibility study of the hydro power plant in West Sumatra, the financial performancef of the project, and find which variable that affect the project greatly. This research performs general environment analysis using PESTEL analysis to identify whether the environment support the project execution or not. The financial feasibility analysis performs using the discounted cashflow method and evaluated using Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PP). To identify which variable that affected the financial feasibility of the project, the author use sensitivity analysis and scenario analysis. Furthermore, Monte Carlo simulation also performed in this research to give an information regarding the probability impact of the uncertainty from the selected variable. The calculation result shown that the project is financially feasible with NPV of Rp. 1.832.776.500.481, IRR of 15,77% which is higher than the weighted average cost of capital (WACC), and the payback period for 9,15 years. The financial performance also shown a favourable result with the project’s profitability index of 5,41. Long-term debt interest rate, capacity factor, agreement price, CAPEX need, and inflation rate are the highest five variable that affect the feasibility of the project. According the Monte Carlo simulation result using 1000 iterations, the project has probability of 6,34% in making the project not feasible.

Analisis Teknis-Ekonomi Pembangkit Listrik Tenaga Hybrid Solar PV/Biogas off Grid System

ABSTRACTReliability of the electric power system and fulfil the certification of sustainable industries in the palm oil industry are offered by utilizing the potential of renewable energy sources as power plants. This research is aimed to analyze the technical and economic aspects of the Solar PV-Biogas power plant at PT. TBS. The method used in this research is hybrid parallel with the off grid network system. In manual calculations showed an optimal generating system consisting of an anaerobic digester with a lagoon capacity of 28,934.81 m3, 1,560 kW biogas generator, 4,040.22 kWp PV array, 2000 kW bidirectional inverter, and 10,125 units of batteries with capacity of 1,547Ah. Then the system is evaluated using HOMER Pro software with project lifetime of 20 years, and the total electricity production obtained during the life of the project is able to supply loads continuously with an average excess electricity about 25.23%/years of total production. Meanwhile, in the economic analysis of hybrid power plants require an initial investment (NPC) of Rp.233,553,169,589.30, with total CO2 emissions of POME 44,073.75 tons/year, then the cost of Certified Emission Reduction is obtained about Rp.6,611,062,500/year. The calculation of economic feasibility results in a Net Present Value of Rp.136.266.578.753, Payback Period of 13,8 years, and an Internal Rate of Return of 9,41%. Based on the result of techno-economic analysis in the research, it can be concluded that this hybrid generating system has the potential to be developed for study that is more detailed if it is to be implemented.Keywords: HOMER Pro, Off-grid, PT. TBS, Solar PV/Biogas, Techno-economic.

Determining the Optimal Concession Period in Cancer Hospital Project using Public-Private Partnership (PPP) with Availability Payment Scheme

The construction of Cancer Hospital in city of X which require total Capital Expenditure of Rp 1,135,834,554,688 can answer the need of comprehensive cancer services in Indonesia. But due to limited local government budgets, forcing local government to find alternative funding through Public Private Partnership (PPP) scheme. One of the newest PPP scheme at the moment is the Availability Payment (AP) scheme.
 Through this research, authors analyze the optimal concession period and the feasibility of this investment plan by calculating the required Capital Expenditures, Operating Cost, and other expense and Risk embedded to the project. The optimal concession period is analyzed by simulation of different concession period scheme ranging from 10-25 years and find the lowest required Availability Payment. The feasibility of the cancer hospital project is analyzed by using Discounted Cash Flow parameter which are Net Present Value, Internal Rate of Return and Payback Period. The risk embedded to the project is analyzed by using sensitivity, scenario and monte carlo analysis.
 From the result of Availability Payment calculation, the optimal concession period for this project is 22 years, this period scenario generates AP payment of Rp 287,712,786,883. The result of this project is financially feasible with positive Net Present Value of Rp 95,490,595,725, the Internal Rate of Return (IRR) of 12,66% which greater than Weighted Average Cost of Capital (WACC) of 11.92% , and Payback Period of 11,17 years. This Cancer hospital Project is financially safe to build by business entity (BUP). From 10,000 trials of Monte Carlo simulation, the project NPV will lies between Rp 59,335,915,203 to Rp 121,260,967,584 with 95% certainties with worst case scenario NPV still positive Rp 40,041,126,128. Based on the sensitivity analysis the COGS expense is the variable that most affecting the overall NPV of this project, followed by the long-term debt interest rate.

Analisis Kelayakan Usaha Produksi Biji Kopi Sangrai dan Jasa Penyangraian: Studi Kasus pada Java Sumedang Coffee

<p><em>The development of specialty coffee roasted beans business and coffee roasting services is currently quite rapid, but often that the business is not based on the feasibility analysis. This study aims to analyze the feasibility level of the production of specialty coffee roasted beans and roasting service of coffee beans. This study was carried out beginning from November 2019 until February 2020 with case study method at Java Sumedang Coffee (JSC) in Genteng Village, Sukasari District, Sumedang Regency, West Java Province. Primary data was collected based on test results and interviews directly with the business manager of JSC, while secondary data were obtained from published scientific articles. The results of this study show that with the use of a roasted machine for 5 hours per day or 1200 hours per year at an interest rate of 7% per year, the business of specialty roasted coffee beans production at JSC are feasible with an assumption of a minimum selling price of Rp.128,500/kg. The indicators of business feasibility are NPV (Net Present Value) Rp. 111,759,128.10; BCR (Benefit Cost Ratio) of 1.02%; IRR (Internal Rate of Return) of 6.21%; capital returned in the 17<sup>th</sup> month. While, in the coffee bean roasting service business are feasible if the minimum roasting service cost is Rp. 14,000/kg, with feasibility indicators are NPV Rp. 112,286,86; BCR of 1.23; IRR of 6.25% per month; and PBP occurred in the 17<sup>th</sup> month.</em></p>