FINANCIAL FEASIBILITY STUDY TO OPENING NEW BRANCHES (CASE STUDY: PT LINTAS NUSANTARA PERDANA)

• Main Author: Nur Cahyo, Aulia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/56015
• Institution: Institut Teknologi Bandung

In the process...PT. Lintas Nusantara Perdana is a logistics company that has experience in the delivery service for at least 20 years. In 2020, there was a very significant decrease in profits. This situation enforces PT. Lintas Nusantara Perdana to make strategic decisions. One of them is to enlarge the market by opening new branches. Opening new branches will increase the number of customer coverage, which will have an impact on increasing profits. In 2020 there are three new branches Semarang Baru, Yogyakarta Baru, and Bogor. This final project is intended to determine which branch is economically feasible. This assessment criterion uses collaboration between the Net Present Value (NPV) method, the Internal Rate of Return (IRR), the Payback Period (PBP), and the Profitability Index (PI). This final project aims to evaluate which branches are economically and financially feasible to continue and which branches cannot be continued. The results of this feasibility study are only Semarang and Bogor that economically and financially feasible. However, However, at the Yogyakarta Baru branch still get loss of their operational cashflow and the NPV aspect which was valued at IDR -162,007,388. This branch cannot be accepted to open. So, it can be concluded that the company can continue the operational activities of the two branches, Semarang Baru and Bogor.