FINANCIAL FEASIBILITY STUDY OF PRINTING PLANT PROJECT (CASE STUDY OF RA PLANNER BOOKSTORE) Financial Feasibility Study of Printing Plant Project (Case Study of RA Planner Bookstore)
| Main Authors: | Rumbianingrum, Wahyu; School of Business and Management, Institut Teknologi Bandung, Damayanti, Sylviana Maya; School of Business and Management, Institut Teknologi Bandung |
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| Format: | Article info eJournal |
| Bahasa: | eng |
| Terbitan: |
The Indonesian Journal of Business Administration
, 2022
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| Online Access: |
https://journal.sbm.itb.ac.id/index.php/IJBA/article/view/4375 |
Daftar Isi:
- RA Planner is a publisher company that create and publish printing product. In 2018 with high demand RA Planner successfully printed planner book as much as 23,000 planner books and sold out With the analysis of the printing industry that is still experiencing growth and sales growth which is increasing every year, owner RA Planner is interested to do a plan to make a printing plant independently. Before starting the project, financial feasibility study must be conducted to discover the profitability of the project and the risk that could occur during the business operation. This study will use Discounted Cash Flow (DCF) model and its parameters for analyzing project’s profitability, Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), and Profitability Index (PI). In order to develop DFC model, author made free cash flow projections using FCFF approach. The financial model was based on many assumptions which are obtained from several perspectives and approaches. Risk analysis conducted using sensitivity analysis, scenario analysis, and Monte Carlo analysis. According to the financial feasibility study, the Net Present Value derived from the calculation is 23,120,867,265 which is higher than IDR 0; the Internal Rate of Return is 18.55% higher than the Cost of Equity 15.88%; the Payback Period is 6 Profitability Index from this project is 1.97 which is higher than the criterion must be higher than 1. It can be inferred from those four criteria that these projects are financially feasible.Keywords: Financial Feasibility Study, Investment, Printing Industry, Journal, DCF, Free Cash Flow"