International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS)
Vol. 3 No. 3 (2023): June

PROCESSING INDUSTRY INVESTMENT FEASIBILITY ANALYSIS TAPIOCA FLOUR IN ACEH BESAR DISTRICT

Hasnawi (Universitas Syiah Kuala)
Ahmad Humam Hamid (Universitas Syiah Kuala)
Fajri (Universitas Syiah Kuala)



Article Info

Publish Date
08 Jun 2023

Abstract

The development of agro-industry still has several obstacles in its implementation. This is wrongly caused by the characteristics of agro-industry which have a relationship from upstream to downstream, there must be guaranteed production from upstream so that there will be continuity of production. In addition, human resources are not yet qualified and equipment is still relatively simple, one of which is processing cassava into tapioca flour in Aceh Besar District. The purpose of this study is to analyze the feasibility of investing in the tapioca flour industry in Aceh Besar District from a financial perspective. The feasibility analysis approach method on the financial aspect is carried out quantitatively. Analysis of the financial aspect for investment in the tapioca flour processing industry can be assessed with four criteria, namely: NPV (Net Present Value), Net Benefit/Cost (B/C), IRR (Internal Rate of Return) and Payback Period. The results of the research on the development plan for a tapioca flour processing business are profitable or feasible to run in Aceh Besar District, based on the Net Present Value (NPV) on the Discount Factor (DF) of 14% for an economic life of 15 years of Rp. 6,879,487,975, the Net B/C value is 4.66, the IRR is 88.36%, and the Pay back period (PBP) is 4 years, 9 months, which is less than the project life.

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Journal Info

Abbrev

IJEBAS

Publisher

Subject

Economics, Econometrics & Finance

Description

This journal aims to examine new breakthroughs and current issues regarding advances in science and technology in the fields of Economics, Business, Sharia Administration, Accounting and Agriculture ...