FINANCIAL FEASIBILITY ANALYSIS OF ENGINE CARBON CORRECTION AND CATALYTIC CARBON CORRECTION EQUIPMENT INVESTMENT FOR UNION MOTOR WORKSHOP

The study conducts the financial feasibility of investing in engine carbon correction and catalytic carbon correction equipment for Union Motor Workshop, an automobile repair firm situated in Tangerang, Banten. Faced with the decision to either purchase or lease the eco- innovative equipment, the st...

Full description

Saved in:
Bibliographic Details
Main Author: Ajeng Estralita Aulia Andi Prameswari, Raden
Format: Final Project
Language:Indonesia
Online Access:https://digilib.itb.ac.id/gdl/view/86102
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Institut Teknologi Bandung
Language: Indonesia
Description
Summary:The study conducts the financial feasibility of investing in engine carbon correction and catalytic carbon correction equipment for Union Motor Workshop, an automobile repair firm situated in Tangerang, Banten. Faced with the decision to either purchase or lease the eco- innovative equipment, the study employs a comprehensive analysis using key financial metrics such as Payback Period (PP), Discounted Payback Period (DPP), Net Present Value (NPV), Profitability Index (PI), and Internal Rate of Return (IRR). In addition, a risk assessment is performed using sensitivity analysis to analyze the stability of financial outcomes throughout different scenarios. The study's findings suggest that leasing the equipment is the most beneficial financial option, offering a quicker return on investment, increased profitability, and decreased financial risk. Therefore, the research suggests that Union Motor Workshop might explore the option of leasing, as it is in line with the company's objectives of sustainability and long-term growth.