Abstract

The Indonesian poultry meat processing industry has grown with a positive trend. In the future, the prospects for this industry are expected to grow along with the increase in population and people's income. Therefore, the capacity of poultry meat processing factories, such as chicken nuggets and sausages, needs to be increased through an investment realization. In realizing an investment plan, a feasibility appraisal needs to be conducted to analyze whether or not the investment plan is feasible, especially from a financial aspect. In this study, a financial model has been developed using the discounted cash flow (DCF) method to calculate financial feasibility indicators of a new poultry meat processing factory. The investment plan also considers the risk impact of uncertain factors that may occur in the future. The estimated risk impact is calculated using the value-at-risk (VaR) approach with the Monte Carlo simulation. The results of this study will has benefit as a benchmark for investors for making decisions on an investment plan.