Value Internal Rate Of Return Research Articles

Evaluating the agronomic and economic viability of biochar in sustainable crop production

This paper examines the economic viability of biochar application in crop production, focusing on varying application rates of 0, 4, 8, 12, 16, 20, 24, and 28 tons per hectare. Biochar, produced through biomass pyrolysis, has shown promise in improving crop yields and contributing to environmental sustainability. The biochar production financial metrics were analyzed, and it shows that the economic parameters such as Operational Expenditure (OPEX) amounting to $2339.40, feedstock cost of $2420.25, and transport cost of $293.71. The total biochar production cost was $232.87 per ton, with labour costs comprising 27.07 % of the overall production and application expenses. The analysis revealed that the maximum annual revenue from crop production (peas in the rabi season and maize in the kharif season) reached $525.88 per hectare at a biochar application rate of 12 tons/ha. Carbon sequestration revenue was estimated at $186.6 per ton of biochar. Economic indicators revealed that the benefit-cost ratio (BCR) was the highest at 1.476, with an 8 ton/ha biochar application rate. At the same time, the net present worth (NPW) and internal rate of return (IRR) also maximized at this rate, reaching $932.85 and 85.71 %, respectively. Conversely, higher biochar application rates of 24 and 28 tons/ha resulted in negative NPW and IRR values and BCR values below 1, indicating economic infeasibility at these levels. These findings highlight the economic viability and potential agronomic benefits of biochar application at optimal rates of 8 tons/ha for promoting sustainable crop production.

Utilizing PVSyst for planning a hybrid system rooftop solar power plant at Makassar Eye Hospital

Installing rooftop Solar Power Plants (SPP) represents the most efficient solution for reducing substantial electricity consumption in office buildings and hospitals, as Makassar Eye Hospital exemplifies. The research commences by addressing concerns about electricity availability and daily usage at the hospital while evaluating the solar radiation potential. Subsequently, the development of the SPP system begins. A location assessment is conducted using various tools to gather the necessary data for SPP design. In this study, the planning phase involves the utilization of PVSyst software for the technical analysis of electrical energy generation and system performance calculations. Additionally, the economic analysis includes evaluating the initial investment costs for establishing the SPP and considering prevailing market prices for components. The feasibility of the SPP investment is determined by calculating key financial metrics, including the Payback Period (PP), Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), and Return on Investment (ROI). According to the economic analysis findings, the initial investment cost for the SPP amounts to Rp. 544.031.733. The energy production value per kilowatt-hour (kWh) stands at Rp. 1.278, resulting in a Payback Period (PP) of 13,8 years, a Net Present Value (NPV) of Rp. 138.182.638, an Internal Rate of Return (IRR) of 11.51%, and a Return on Investment (ROI) of 25.4%. These results affirm the plan's feasibility, as the IRR value surpasses the Discount Rate (8.43%).

Perencanaan dan Evaluasi Sistem Penyulang Ganda Sebagai Backup Power Supply PT. X

In order to meet the needs of electrical energy, PT X. receives electricity supply from PLN as the main source while the generator with a total capacity of 2.228,5 KVA as a backup electricity supply. PT X plans to procure a double feeder as a backup power supply to replace the generator set in the hope of getting a more economical backup power supply. So, the purpose of this study are analyzing the planning and technical calculations for the construction of a premium feeder, analyzing the comparisono f the use of generator setting with double feeder from economic point of view, and analyzing the comparison of the efficiency of using generator setting with the use double feeder. The method used in this study was the IRR (Internal Rate of Return) method to determine the value of the rate of return on investment while the SAIDI – SAIFI data was used to determine the reability of the feeder. The result of this research is the double feeder using MVTIC type construction. For Rp/kWh, the use of premium service, namely B3/TM customers is Rp. 1.162,78 per kWh and B2/TM Rp. 1.574,7 per kWh, while Rp/kWh generator setting is Rp. 4.003 per kWh. Meanwhile the double feeder IRR values is 44% and the generator setting is 24%. So, it is more efficient to use PLN premium service.

Economic Feasibility Analysis of Investment in International Circuit Development in the Mandalika Special Economic Zone (SEZ)

The Mandalika Special Economic Zone (SEZ) has been planned from the start to build facilities and infrastructure by creating a management concept set out in the main plan for the area with the theme of eco green tourism. One of the developments that has been developed in the Mandalika SEZ is the Mandalika International Circuit. The construction of the Mandalika Circuit certainly provides many positive aspects, especially in the local economic sector. The impact of Covid-19 in the Mandalika SEZ could trigger a decline in the tourist market. The circuit as a symbol of the Mandalika SEZ was also affected by Covid-19, this resulted in a reduction in visitors to events at the Mandalika International Circuit. So an in-depth analysis is needed regarding the changes that have occurred as a result of Covid-19, especially in the financial aspect. For feasibility from the financial aspect, cash flow calculations are used with investment feasibility parameters, namely; NPV (Net Present Value), BCR (Benefit Cost Ratio), IRR (Internal Rate of Return), and PP (Payback Period). From the analysis of the financial aspects, the NVP value was obtained with an interest rate of 8.75% per year, in the initial planning phase the value was obtained at IDR 202,628,841,832,- in 2035, then during the operational phase the NVP result was IDR 14,497,533,652,- in 2041, and the NPV multiplier effect is IDR 552,401,765,515 in 2041. The BCR value in the initial planning phase is 1.112 in 2035. During the operational phase the BCR value is 1.008 and in the phase due to the impact of the multiplier effect it is obtained The BCR value is 1.304 in 2041. The IRR value in the initial planning phase was 13.96% in 2035. In the operational phase the IRR was 12.56% and the IRR due to the impact of the multiplier effect was 14.43% in 2041 . The PP value for the initial planning phase is obtained over 8 years. Meanwhile, in the operational phase, PP was obtained for 11 years and PP due to the impact of the multiplier effect was obtained for 9 years. The Mandalika International Circuit project was declared feasible based on analysis data that had been carried out in the operational phase and due to the impact of the multiplier effect, even though it took longer than the initial planning phase.

ECONOMIC FEASIBILITY OF ON-GRID PHOTOVOLTAIC SYSTEMS IN A SINGLE-FAMILY HOUSE IN RIO DE JANEIRO CITY

Brazil is a tropical country with favorable conditions for the generation and utilization of solar energy. This energy source becomes even more attractive when considering the dry periods that impact hydroelectric power generation in the country, resulting in an increase in energy costs reflected monthly in consumers' bills through tariff flags. In order to enhance residential architectural designs and promote energy efficiency, a feasibility study of photovoltaic systems was conducted, considering key economic indicators and the current tariff flags. To accomplish this, research was conducted in collaboration with Mounting Companies for a case study located in the city of Rio de Janeiro, adopting technical assumptions commonly used for residential photovoltaic system sizing. For the graphical sizing of the case study, factors such as the environment and summer and winter solstices were taken into account, and a shadow study was conducted to assess the potential loss of power generation by the photovoltaic system throughout the year. The shadow study revealed that, during both solstices, the optimal time for power generation by photovoltaic systems is between 9 a.m. and 6 p.m. Essentially, the calculated values of NPV (Net Present Value) and IRR (Internal Rate of Return) indicate that the project is economically viable and particularly advantageous during the yellow and red tariff flags, situations in which energy costs tend to be higher for consumers.

AspenPlus-based techno-economic analysis of solar-assisted sorption-enhanced gasification for hydrogen and chemicals recovery from polyethylene terephthalate waste

Although the recycling of polyethylene terephthalate (PET) bottles is well-operating in several countries, less than 10% of PET plastic waste was recycled in a closed loop globally, and the rest was discarded as leakage. A process to recover hydrogen and valuable chemicals through solar-assisted PET sorption-enhanced gasification was analyzed. PET steam gasification with CaO and solar-assisted calcium looping processes were already experimentally studied in our previous work to obtain optimized processing conditions. In this paper, the integrated process with product purification, steam power plant, and LiBr-H2O absorption chiller was simulated with Aspen Plus based on previous experimental results to investigate the techno-economic performance. Material flows, energy balance, exergy destruction, and economics were analyzed. Day and night mode operations at different seasons were evaluated based on energy balance and the weather conditions of Naples, Italy. The energy and exergy efficiencies of day and night modes varied between 62%–72%. The annual production yields of hydrogen and benzene were 684 t and 6286 t, respectively. Due to the high production of benzene, its higher price (>1092 €/t) would make the project feasible with a larger than 12% internal rate of return value and competitive break-even hydrogen price (less than 4 €/kg). The results show that this integrated process could be technically and economically feasible. It has the potential to be implemented for hydrogen and benzene recovery from PET plastic waste with sustainable solar heat source and zero fossil CO2 emissions.

Study of the types and feasibility of the rattan industry for the sustainability of non-timber forest products in North Sumatra

Rattan has significant value in the craft creative industry because of the various benefits associated with its use as a raw material for various handicraft products. This research was conducted to determine the types and sources of raw materials, the types of processed products produced, and the types of processed products, and to determine the business feasibility and income of the rattan industry. The results showed that five types of rattan were used, namely Calamus manau, Calamus scipionum, Calamus caesius, Daemonorops angustifolia, and baliong rattan. The results of the study show that the average income in 2022 obtained by Small and Medium Enterprises (UKM) Mulia Rattan, Sibayak Rattan, Pancur Simalem Rattan, Sejahtera Rattan, and Rattan Aat respectively was 197,990,800, IDR; 13,510,789, IDR; 141,029,989 IDR; 134,029,989 IDR and 228,294,200 IDR. Based on the feasibility analysis, the Internal Rate of Return (IRR) of each UKM was 78%, 47%, 69%, 84%, and 95%, respectively. All IRR values are greater than interest rates, which means that UKM activities are feasible to carry out. BCR for each business is 1.23; 1.29; 1.64; 1.31. All Small and Medium Enterprises are said to be feasible because of BCR>1.

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.

Economic viability of using OvSynch and fixed timed artificial insemination protocol in breeding improvement of pastoral herds in the rangelands.

Though using Assisted Reproductive Technologies (ARTs) can improve oestrus detection, conception and pregnancy success, thus benefit breeding program implementation, empirical evidence of their economic viability is lacking to inform investment decisions in pastoral herds. This study assessed economic viability of using OvSynch and fixed Timed Artificial Insemination (TAI) protocol in Sahiwal upgrading breeding program under two hypothetical cases of best and worst in activity-based money allocations when pastoral herds deploy either optimal or low input husbandry practices. From herd owners' assessment of milk production, best-case scenarios attain on average 10 L/cow/day with optimal husbandry and 5 L/cow/day with low input husbandry. The worst-case scenarios attain 5 L/cow/day with optimal husbandry and 1 L/cow/day with low input husbandry. Benefit- Cost Analysis (BCA) estimated Net Present Value (NPV), Benefit-Cost ratio (BCR) and Internal Rate of Return (IRR) to establish economic viability of using OvSynch and TAI Protocol in pastoral breeding programs. Both best-case scenarios retuned positive NPVs (82,028 and 6,912), BCR values (1.68 and 1.08) and IRR (27.46% and 8.08%) while worst-case scenarios returned negative NPVs (-135,855 and -141,025), BCR values of below 1 (0.87 and 0.66) and IRR values below the minimum rate of returns. These economic parameters were sensitive to price changes in inputs and outputs, under both optimal and low input husbandry practices. Results indicate that using OvSynch and TAI Protocol is a profitable and economically viable investment under optimal husbandry practices but not under low input husbandry practices. By implications, use of OvSynch and TAI Protocol in Sahiwal upgrading breeding programs need be accompanied with improved husbandry practices and de-risking pastoral herd owners from price changes in input and output markets.

INVESTMENT ANALYSIS OF KARANGAGUNG TUBAN FISHING PORT DEVELOPMENT WITH PPP AVAILABILITY PAYMENT FINANCING

As the largest maritime country, Indonesia holds tremendous potential in fisheries and marine resources, serving as a primary driver for national economic growth. Despite the substantial potential for fishery activities in the Karangagung region, limited infrastructure and government budget constraints hinder the optimization of these activities. This research aims to conduct an investment analysis for the development of a fishery port in Karangagung, utilizing the Government and Business Entity Cooperation (PPP) scheme with Availability Payment financing. The investment analysis methods employed encompass the calculation of Net Present Value (NPV), Internal Rate of Return (IRR), and Benefit Cost Ratio (BCR), considering Availability Payment financing. Additionally, the study will analyze the Life Cycle Cost (LCC) in the development of the Karangagung Fishery Port. Therefore, this research aims to provide a comprehensive overview of both financial and non-financial potential benefits derived from the development of the Karangagung fishery port. Under the Availability Payment scheme, the Project Responsible Party will compensate the Business Entity reasonably for investments, operational costs, and fair profits. They will also be granted permission to provide these services for a specific duration. Upon the conclusion of this period, all assets will become government property. The analysis results indicate that the PPP Availability Payment financing scheme yields a positive NPV, an IRR value of 7.26% with returns in the 24th year, and a BCR value exceeding 1. Hence, this PPP scheme can be deemed feasible for implementation in the Karangagung Fishery Port development project.

ANALYSIS OF INVESTMENT FOR THE DEVELOPMENT OF THE KARANGAGUNG FISH PORT IN TUBAN REGENCY

Karangagung Fishing Port (PPI) in the coastal area of Tuban Regency, Palang District is known as the fisheries base in Tuban Regency, even most of the fish production from the Karangagung PPI fishing port has been marketed to all regions in East Java province. The sustainability of the development of an infrastructure project is very important to consider in the development of infrastructure in the maritime sector, especially the fisheries sector. This research will produce an investment analysis on the development of the Karangagung Fishing Port (PPI) infrastructure project which is expected to increase the productivity of the fisheries sector in the area. The investment analysis method used includes the calculation of Net Present Value (NPV), Internal Rate of Return (IRR), and Benefit Cost Ratio (BCR) with the analysis results of NPV value of 6,648,460,488.00, IRR 6.21% and BCR 1.0178 with an investment period of 25 years. From the results of the investment analysis that has been carried out, the NPV value is positive. then the IRR value or the rate of return on an investment with a value greater than the discount factor plan and the benefit value or BCR is more than 1 and the payback period in year 25 is the same as the investment period of 25 years. So, the feasibility of investment is still said to be feasible to use for handling the work of the Karangagaung Tuban Fishing Port Development.

Determining the discount rate for complex investment projects in oil and gas industry

In the investment programs of modern oil and gas companies (i.e., PJSC Lukoil Oil Company, PJSC Gazprom, PJSC Novatek), complex projects are gaining more and more attention, and in this case the efficiency for an investor should be assessed in terms of the overall effectiveness of projects. As an object of research, the authors consider a set of projects for the types of gas production and transportation activities. This paper studies the question of finding a discount rate with a focus on specific features of oil and gas industry. The relevance of the chosen topic is determined by the need to find a balanced rate of return of a complex investment project for inclusion in the investment portfolio of an oil and gas company. When evaluating the economic efficiency of complex projects that include subprojects of various types, such as mining or transportation, the discount rate of the entire project should be in balance with the regulatory rates for the types of activities presented in the project. In their work, the authors, drawing on the analysis of the formulas of the mathematical apparatus for calculating complex discount rate, propose a variant of calculating the internal rate of return (IRR) for a group of projects for which there is a formed level of normative values of IRR. The article is designed within the framework of economic research methods. The analysis of scientific literature and the comparative approach are combined with the use of methods of economic and mathematical modeling. The theoretical significance of the study consists in the description of the main postulates related to the analysis of profitability of investment projects in oil and gas industry. The practical significance lies in the development of approaches to determining the discount rate when assessing the economic efficiency of complex high-risk projects on the example of gas industry and the possibility of using these approaches in investment and strategic analysis of oil and gas companies.

Technical and economic modeling of a trigeneration system with EF7 engine as a prime mover

In this paper, a comprehensive technical and economic modeling of a trigeneraion system based on a gas engine named EF7 is presented. The innovation is presenting a differential model with high accuracy which considers the effects of spark timing in half-load and full-load modes on the system technical performance, including specific fuel consumption, and the economic performance of the system, including fuel cost savings, investment payback period, net present value and internal rate of return.From economic viewpoint, at half-load condition and optimal spark timing (18° CA BTDC), the system will reach profitability after 8 years. From technical viewpoint, at half-load condition, the spark timing should be more advanced (24° CA BTDC) and the overall specific fuel consumption is 103.24 gr/kWh.But, at full-load mode and optimum ignition timing (18° CA BTDC), the economic performance has improved and with 10% inflation rate, the system can reach profitability after 4 years. Also, after 7 and 10 years, the profit values are $42,300 and $80,500, respectively and internal rate of return values of 22 and 26%, respectively. Also, from technical viewpoint, at full-load condition and optimal spark timing (22° CA BTDC) the minimum amount of overall specific fuel consumption is 110.42 gr/kWh.

Sensitivity of patchouli oil refining business (Case study: Patchouli Oil Agro, Tompira, North Morowali)

Patchouli oil is an essential oil obtained by distilling all parts of the patchouli plant. This oil has good prospects in several industries, such as perfume, cosmetics, and insect repellent. Although this commodity has potential opportunities in foreign markets, several problems were found in oil refinings, such as unstable raw material prices and transportation costs. This research was conducted at the Agro Patchouli Oil Refining Business in Tompira, Petasia Timur District, North Morowali Regency. The determination of refining business was done purposively. There were two data used in this study, primary data and secondary data. The analysis used to determine the objectives to be achieved in this study is Sensitivity Analysis taking into account Net Present Value (NPV), Internal Rate of Return (IRR), and Net Benefit Cost Ratio (Net B/C). The result of calculating the positive NPV value was IDR 31,450,688; the IRR value was 25.80%; and the Net B/C value was 1.28. Sensitivity analysis shows that the Agro Patchouli Oil Refining Business is still profitable even though transportation costs have increased by 33% or the greatest change in patchouli raw material prices is 5%.

Implementation and financial analysis of good agricultural practices (GAPs) of True Cardamom (Amomum compactum SoL.): The experience from smallholders’ farmers

True cardamom is a biopharmaceutical plant used for the essential ingredients of traditional medicines, spices, additives, and herbs in various industries. Farmers should adopt Good Agricultural Practices (GAP) for good quality and productivity, which can increase cultivation costs. Evaluating the implementation of GAP and the financial aspect is important to see its feasibility. This study aims to assess GAP’s application level and its financial analysis based on adoption. Respondents were taken using the Cluster Random Sampling method, which determined as many as 43 farmers in Cisolok District. Based on the level of implementation of True Cardamom’s GAP, the farmers are categorized as high, medium, and low adoption with a percentage of 25%, 75%, and 0%, respectively. The financial analysis results of the Net Present Value (NPV) of high-category farmers and medium-category are IDR 88,603,622.39 and IDR. 31,879,670.82, respectively. The high-category GAP adoption has a higher value of Net Benefit-Cost Ratio than the others, medium-category, 4.5 and 2.4, respectively. So do the Internal Rate of Return (IRR) values; high-category has an IRR value more significant than the other which the IRR is higher than the interest rate (11%). Cardamom business is declared financially feasible with a payback period at the application level of GAP for high and medium categories: two years, two months, and five years and six months, respectively.

Feasibility of utilization of eucalyptus leaves (Eucalyptus spp) from logging waste in industrial plantation forests to produce essential oils

Eucalyptus is a type of industrial plantation forest (HTI) tree that has high economic value. Almost all parts of eucalyptus can be used. In addition, wood can be used as raw material for pulp, leaves and twigs containing cineol can be used as raw material for essential oils. This study aims to analyze the feasibility of using eucalyptus leaves from a financial perspective for essential oil production in the plantation forest area of PT. Toba Pulp Lestari Tbk. The analytical method used is descriptive analysis, financial analysis with two selling price scenarios, namely the high target scenario and the low target scenario with the criteria of Net Present Value (NPV), Benefit Cost Ratio (BCR), and Internal Rate of Return (IRR). The results showed that the use of eucalyptus leaves as a raw material for essential oils from logging waste in plantation forest areas is financially feasible. With details of the high target scenario, it produces an NPV value of IDR 134,903,510,450 (USD 8,895,714.5), an IRR value of 33.01% and a BCR value of 3.76. The NPV value for the low target scenario is IDR 84,029,947,498 (USD 5,541,045), the IRR value is 21.90% and the BCR value is 2.72.

Analisis Kelayakan Finansial Dalam Peningkatan Kapasitas Kandang Di Usaha Peternakan Ayam Broiler Andien

The Broiler Chicken business owned by Andien, belonging to Mrs. Tri Winarti, initially operated with a capacity of 12,000 chickens and planned to expand to 24,000 chickens. This study aims to assess the sustainability of the development of Andien's Broiler Chicken farm to 24,000 chickens from a financial perspective. Financial analysis was conducted through calculations of Net Present Value (NPV), Benefit Cost Ratio (BCR), Internal Rate of Return (IRR), and Payback Period (PP). From the calculation results, it can be concluded that the expansion of Andien's Broiler Chicken business from 12,000 chickens to 24,000 chickens is a viable step based on the scenario calculations. The Payback Period (PP) is 1.31 periods, indicating a quick payback of investment as PP is less than 12 periods. The calculation results show an NPV value of Rp 4,936,714,867 using a 6% discount rate (based on the 2023 BRI KUR interest rate), and if using a 7% discount rate (based on the 2023 Mandiri KUR interest rate), the NPV would be 4,633,045,331. The presence of a positive NPV indicates the viability of this business development. The calculated IRR value reaches 22.26%, exceeding the 6% discount rate. The feasibility of the business is also supported by a BCR value of 1.09, where a ratio above 1 indicates the viability of the business.

ANALISIS PENDAPATAN DAN KELAYAKAN USAHA PENGGILINGAN PADI MENETAP DI KECAMATAN LAUBALENG, KABUPATEN KARO

This research was conducted in three permanent rice mills located in Laubaleng District, Karo Regency, they are Dison Tani rice mill, Karunia rice mill and Akung rice mill. This research aimed to analyze the revenue and the feasibility of the rice milling in Laubaleng District. The revenue of rice mills business was analyzed by cost and income analysis formula. Analytical tools that used to analyze business feasibility were Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), Payback Period (PP) and Return on Investment (ROI). Result showed that the average income was Rp 360.246.698/year and the profitability was 6,13%. The NPV value of the permanent rice milling business in Laubaleng District is Rp 179.141.461, IRR values is 19,51%, PI value is 1,19, PP is 3 years 3 month and ROI is 35,65%. Based on that results, permanent rice mills in Laubaleng District are profitable and feasible to develop.

Feasibility Analysis of Sumedang Tofu MSMEs Business with Its Development Strategy

This research concerns the development strategy and business feasibility analysis using a value engineering approach. MSMEs Sumedang Tofu is a small industry that processes and markets Sumedang Tofu to the public. The problem that occurs in the sumedang tofu production is environmental conditions that are poorly maintained, and the results of tofu sales fluctuate. Therefore, it is necessary to do a business feasibility analysis to find out whether the Crispy Sumedang Tofu UKM is feasible or not to operate. After identifying the business feasibility analysis aspects, the next step is to determine the right development strategy using a value engineering approach. Value engineering aims to achieve the best value by defining the functions needed to complete the target value and to innovate, improve, and minimize production costs while maintaining the quality and usability of the products produced by considering consumer needs. The development that will be carried out is sumedang crispy tofu packaging. Value engineering has several stages, including information, functional analysis, creative, analysis and evaluation, and recommendations. The Net Present Value (NPV) shows cash flow for three years with a bank interest of 10%, and the resulting NPV is positive. The Internal Rate of Return (IRR) shows that the total value of IRR is 46%, and UKM Sumedang Crispy Tahu is said to be feasible. This is because the IRR value exceeds the loan interest (10%), 46%. and the Payback Period (PP). This MSMEs is feasible to continue because the business capital invested is IDR 143,202,000 and will be fully recoverable within one year and 11 months.

Analysis of the Financial Feasibility of Potential Post-Pandemic Businesses Using the Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PP) Methods (Case Study: MSME Environmentally Friendly Bioplastic Products)

MSMEs play a strategic role as a driver of post-pandemic economic growth. MSME bioplastic products have the potential to contribute to economic growth and environmental sustainability. This study aims to determine the financial feasibility of MSME bioplastic products based on NPV, IRR, and PP values. The method uses evaluative research types with data processing and financial data analysis. Research shows the results of initial calculations such as 1) Investment costs of IDR 5,567,000; 2) Projected net cash flow of IDR 4,887,936 per year; 3) Determination of a discount of 6%. Based on these calculations, the results obtained are an NPV value of IDR 15,022,764.59, an IRR value of 84%, and a PP value in the 2nd year of production. Based on these three analyses, it can be concluded that the business potential of post-pandemic MSME bioplastic products can be said to be financially feasible