FINANCIAL FEASIBILITY ANALYSIS OF NITRILE GLOVES MANUFACTURER PROJECT FOR PT XYZ

• Main Author: El Shaddai Sunatoputra, Imanuel
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75421
• Institution: Institut Teknologi Bandung

The healthcare industry in Indonesia is currently a highly promising sector. There is a growing emphasis on the utilization of medical devices by individuals and various industries in their daily lives. Recognizing the substantial market potential within the Indonesian medical device sector, the company has formulated plans to venture into nitrile glove production as a means to augment its profits. To ascertain the project's feasibility, the author has employed the capital budget analysis method during the research process. Data collection involves gathering both primary and secondary data from various sources. The data analysis proceeds through several stages, including an overview of the project, initial investment assessment, cost and revenue projections, income statements, balance sheets, project cash flow evaluation, risk assessment using sensitivity analysis and Monte Carlo simulation, and capital budget analysis to determine the feasibility of the Nitrile Gloves Manufacturer project. The primary objective of conducting this feasibility analysis is to ascertain the viability of the Nitrile Gloves Manufacturer project for PT XYZ. This is achieved through calculations of the Net Present Value, Payback Period, Internal Rate of Return, and Profitability Index. Furthermore, a sensitivity analysis is performed by testing various variables to observe their impact on the Net Present Value of the project. Additionally, a Monte Carlo simulation is conducted to simulate potential outcomes.