ECONOMIC FEASIBILITY STUDY OF CLAY, DOLOMITE, AND KAPTAN FACTORY OF PT XYZ FINAL PROJECT

• Main Author: Pristania (19015157), Nadiah
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/29477
• Institution: Institut Teknologi Bandung

Reflecting to the rapid growth of fertilizer consumption rate in Indonesia, PT XYZ, <br /> <br /> one of the fertilizer, agrochemical and seeds distributors private company, intended <br /> <br /> to boost their income source with the plan to develop a new factory, which will be <br /> <br /> functioned to produce several fertilizer commodities that PT XYZ currently <br /> <br /> distribute from their main producer, which are Clay, Dolomite, and Kaptan. <br /> <br /> However, the company need to assess the business’s economic feasibility of this <br /> <br /> project to get to know whether the project is worth doing or not for future <br /> <br /> investment, given that the project potentially incur huge investment and the <br /> <br /> increased future lease rate and consignment rate. Throughout the paper, the author <br /> <br /> would like to analyze the economic feasibility using assessment tools as Net Present <br /> <br /> Value, Internal Rate of Return, Payback Period, and Profitability Index. Moreover, <br /> <br /> the author also conduct the risk assessment using the Sensitivity Analysis and <br /> <br /> Monte Carlo Method. The result from this research is the project is economically <br /> <br /> feasible and it is suggested to be embarked by PT XYZ with several concerns on <br /> <br /> its cash management and pricing policy.