Economic Feasibility Study For Mustika Hijau Residence

• Main Author: Rachmat Ardinan Arifin - 29115232, Mochamad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/28968
• Institution: Institut Teknologi Bandung

In the city of Bandung, where the population of about 2 million people, Bandung has the ability, potential and opportunities to have real estate development. To plan a real estate project, it is necessary to consider to make a decision because the investment in real estate is full of uncertainties. One of the most influential aspects of making decisions is the financial aspect. Therefore, this final paper analyzes the feasibility study by using discounted cashflow method to know the project is feasible or not. <br /> <br /> <br /> This project start from the idea from the owner to develop his asset. Location of this project at citarik baru, gedebage east Bandung. The area projected for feasibility study is 4950 sqm, where the plan for public facility is 290 sqm and for park or greening area is 281 sqm. <br /> <br /> <br /> This study aims to help and give recommendation for developers to make feasibility studies of projects by giving the option. If the result of feasibility aspect shows a good result then the recommendation is run the project and if the result of financial feasibility shows not feasibile then the owner cannot run the project. The owner can using personal funds or loans to banks and IRR as an indicator of the use of funds, if the IRR is bigger than the inflation rate and deposit rate, the project can run and if IRR is not bigger than the loan interest rate and deposit rates then the owner cannot run the project using loan. <br /> <br /> <br /> This feasibility study will analyze using discounted cashflow analysis, with Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PBP), Return of Equity (ROE) and Return of Investment (ROI). <br /> <br /> <br /> The results showed that the payback period of 3 years, NPV Rp 9.973.490.604, IRR 43%, ROI 56% and ROE 52%. Recommendation from the authors that the project can be run based on result of financial feasibility aspect.