Analysis of Beef Cattle Investment in Subdistrict Bancar, District Tuban, East Java from Investor’s Perspective

• Main Author: Aulia (NIM 19014027), Hilmi
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/22454
• Institution: Institut Teknologi Bandung

The development of livestock industry is part of the national development which aims to increase the production of livestock and livestock products, which leads to an increase in income and welfare of the society. The business of beef cattle itself is very potential to be developed in District Tuban. This is indicated by the large population of beef cattle that <br /> <br /> increase every year. It also supported by the policy of Government of Tuban that want to make Tuban as the national beef cattle granary. The Study was purposed to find out the feasibility of beef cattlesystems (profit sharing system and payroll system) in District Tuban.. This research was conducted in Subdistrict Bancar, District Tuban because it is one of the subdistricts with the largest beef cattle population in Tuban. This research was conducted at Wahyu Utama farm and Plandi Rejo farm group. Wahyu Utama is a farm that uses a payroll system for farmers, while Plandi Rejo uses a profit sharing system. This study uses capital budgeting method which will be calculated NPV, IRR, and Payback Period of both kinds of system.The results of this study indicate that that in payroll system the NPV that will obtained is Rp 5,380,156,468, IRR obtained by 26.9%, Payback Period for 5 years and 7 days, and B/C <br /> <br /> Ratio is 1.207. While the company with profit sharing system will get NPV of Rp 42.677,854, IRR obtained by 12.5%, Payback Period will be achieved within 9 years 10 <br /> <br /> months, and B/C Ratio is 1.217. Based on the calculation results it can be concluded that the payroll system will be more profitable for investors. <br />