FINANCIAL FEASIBILITY STUDY IN CONSTRUCTION OF DOUBLE STOREY CLOSED-HOUSE SYSTEM BROILER FARM: CASE STUDY OF CV. CITA POULTRY
The livestock subsector is one of the sub-sectors that needs to be developed because it has a significant.role in Indonesian economy. One type of livestock that is widely developed in Indonesia is chicken broilers because the business in animal husbandry will continue to grow and have bright pro...
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| Format: | Theses |
| Language: | Indonesia |
| Subjects: | |
| Online Access: | https://digilib.itb.ac.id/gdl/view/50262 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The livestock subsector is one of the sub-sectors that needs to be developed
because it has a significant.role in Indonesian economy. One type of livestock that is
widely developed in Indonesia is chicken broilers because the business in animal husbandry
will continue to grow and have bright prospects in the future, along with the community’s
need for food. CV. Cita Poultry is one of the broiler breeder companies domiciled in Tasik
Malaya. In the last 3 years CV. Cita Poultry has experienced a decline in revenue due to
various factors including the high production cost, the company still uses a traditional openhouse
system broiler farm, and there is competition from other livestock companies
because competitors are already using closed-house broiler farm with modern technology.
CV. Cita Poultry plans to build a double storey closed-house system broiler farm in order
to increase its production capacity. This development certainly requires a large amount of
capital investment. Thus, the main objective of this research is to conduct an investment
analysis to determine whether the project is financially feasible to run or not.
In this research, the business situation is analyzed using external and internal
analysis. The external analysis is carried out using PEST and Porter’s Five Forces, and the
internal analysis is carried out using the project’s description and SWOT analysis. After
that, the feasibility of the project is analyzed by using Discounted Cash Flow (DCF)
parameters which are Net Present Value (NPV), Internal Rate of Return (IRR), and
Payback Period (PBP). After getting the results of the calculations, the sensitivity analysis
and Monte Carlo analysis is conducted. The results can be used as recommendations to the
company and make an implementation plan for the project.
From the results of the calculation of the financial feasibility study, the payback
period obtained from this project is 4,32 years. The NPV obtained is Rp 6.724.814.120,
and the IRR is greater than WACC which is 19,57%. Based on the analysis using sensitivity
analysis, it was found that there are 4 variables that are very influential on the NPV value,
that is Inflation Rate, Direct Material, Quantity Sold, and Price per Kg Realization. Based
on the analysis using Monte Carlo, it is found that the probability of this project will get a
positive NPV is 61%. Based on the calculation, it can be seen that this project is feasible to
be carried out and will give benefits to the company. |
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