FINANCIAL FEASIBILITY STUDY OF NEW STORE PROJECT (CASE STUDY: PT. SANDAL KREATIF)

• Main Author: Muhamad Maghfur, Afdial
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/52310
• Institution: Institut Teknologi Bandung

Various industries were affected by the Covid-19 pandemic. One of the industries affected by the Covid-19 pandemic is the footwear industry in Indonesia. PT Sandal Kreatif is an industry player in the footwear industry. The company has thirty-one products that are their main capital to make a profit for the running of the company. Such dependency makes their income fluctuate. However, the company sees a potential in 2021 to tackle it all by opening a new store. Therefore, companies need a feasibility study financially to find out the impact on their current financial condition. They need two alternatives, namely alternative buy decisions or alternative lease decisions based on the company's financial condition. The methodology carried out in this research is to know the company's problems and know the business conditions of the footwear industry. Internal analysis includes company resources, corporate capabilities and core competencies of the company. External analysis includes PEST analysis and industry analysis. After that, the calculation of feasibility study financially and risk management is sensitive analysis. From the calculation of this research obtained the decision to buy NPV amounting to Rp 2,467,660,030 while the lease decision of Rp 8,967,831,158. WACC used by 34.74%. The internal rate of return for buy decision is 41,46% which means less than the 208.85% lease decision. For payback period, purchase decision takes more than 4 years and for the lease decision of 2 months. In addition, for the probability of the company getting a positive NPV is 73% for purchasing decisions and 89.87% for lease decisions. Recommendation for the company's problem is the decision to buy or rent a new store is to rent the new store. In addition, the author assesses from investment project results that show both are worth doing. Because the company asked the author to look at this calculation comprehensively not just in cash outflow only. Net present value, internal rate of return, probability to produce a larger positive net present value that should be a recommendation. Lease decision is a step that should be done by the company. In addition, the company must have special attention to product D, product E, product F, product H and product I which is the determinant of the company in earning because the product is a product that has a high enough sensitivity to affect the net present value.