3rd Asia Pacific International Conference on Industrial Engineering and Operations Management

Investment Feasibility Analysis Addition of CV. XYZ New Milling Machine by Considering Price Changes and Sensitivity Analysis

0 Paper Citations
Track: Undergraduate Student Paper Competition

This Article is a development and refinement of the Article by Rachadian et al. (2013), which discusses the feasibility analysis of adding a new milling machine by paying attention to the attributes and parameters of a more comprehensive investment feasibility analysis. The calculation of the previous research was evaluated by considering the calculation of income, the taxes, the depreciation expense, and the assumption of the selling price itself. In addition, consideration has been carried out on exchange rate fluctuations and relations aspects of each key parameter on investment using sensitivity analysis. The best result was obtained in the form of alternative 2 with Rp. 20,000/plat of selling price assumption. The calculated value of NPV DC2-A is Rp. 123,683,069 with an IRR value of 37.5%, a B/C ratio value of 2.14, a PP value of 1 year six months, and a PI value of 2.47. The values of the various calculations are considered feasible because they have reached the specified requirements. The target for plate production on the DC 2-A alternative in the first year is 3350 units in order not to suffer losses. The alternative production value of DC-2A is the most sensitive to changes in annual cost. If the business unit increases the annual cost by 20%, the business unit will lose much money.


Feasibility Investment, price changes, sensitivity analysis, DC 2-A

Published in: 3rd Asia Pacific International Conference on Industrial Engineering and Operations Management, Johor Bahru, Malaysia

Publisher: IEOM Society International
Date of Conference: September 13-15, 2022

ISBN: 978-1-7923-9162-0
ISSN/E-ISSN: 2169-8767