Research Article
Financial Feasibility for Project Machining Under Bracket PT. Karya Komponen Presisi
@INPROCEEDINGS{10.4108/eai.17-7-2020.2302995, author={Emmelia Tan and Fitria Fitria}, title={Financial Feasibility for Project Machining Under Bracket PT. Karya Komponen Presisi}, proceedings={Proceedings of the 1st International Conference on Economics Engineering and Social Science, InCEESS 2020, 17-18 July, Bekasi, Indonesia}, publisher={EAI}, proceedings_a={INCEESS}, year={2021}, month={1}, keywords={payback period internal rate of returns net present value profitability index financial feasibility decision tree risk analysis sensitivity analysis}, doi={10.4108/eai.17-7-2020.2302995} }- Emmelia Tan
Fitria Fitria
Year: 2021
Financial Feasibility for Project Machining Under Bracket PT. Karya Komponen Presisi
INCEESS
EAI
DOI: 10.4108/eai.17-7-2020.2302995
Abstract
The aumotive and machinary industry nowdays has been very competitive and volatile also. Automotive component producer should consider cautiously. This study do financial analysis of the new project Machining Under Bracket in PT Karya Komponen Presisi. In addition, company wants to find minimum feasible selling price. Therefore, Capital Budgeting Methods are used for project feasibility analysis such as Payback Period (PP), Internal Rate of Returns (IRR), Net Present Value (NPV), and Profitability Index (PI), sensitivity analysis, risk analysis and decision tree. The research data are taken from previous similar project that has been done and used to forecast new project production cost, investment cost and sales forecast. The findings show the New Project „Machining Under Bracket“ feasible to run by the company with coefficient of variances is 19,97%, minimum selling price IDR 20.349 /pcs, expected NPV IDR 1.227.613.848. In addition the result for normal condition IRR is 21,48%, NPV as IDR 1.272.346.624, Payback Period will take three years and three months with Profitability index 1,157.