FINANCIAL FEASIBILITY STUDY IN CONSTRUCTION OF DOUBLE STOREY CLOSED-HOUSE SYSTEM BROILER FARM: CASE STUDY OF CV. CITA POULTRY

• Main Author: Hanifah, Mulya
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/50262
• Institution: Institut Teknologi Bandung

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.