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Capital budgeting analysis for turbine machines of microhydro power plant and its non-monetary considerations : a case study of microhydro power plant at Cibuni, west java for period 2023-2033

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Publisher :Sekolah Tinggi Manajemen IPMI , 2023

Electricity has long been a major component of the economy in Indonesia. In south east asia, Indonesia has a tremendous with 3.643 gigawatt sources of renewable energy for building a power plant. One of the sources is hydro energy, the micro hydro power plant in Cibumi, West Java. The project was carried out by PT. Tirta Mukti Lestari (PT. TML) for the period of 2023 to 2033. The purpose of the study is to determine financial feasibility, to evaluate sensitivity and to analyze the non-monetary impact of selecting a Germany or China turbine machines. The study will use mixed methods; strategic analysis of SWOT and porter five forces theories and capital budgeting model indicators: Payback period (PP), Discounted Payback period (DPP), Return on Investment (ROI), Net Present Value (NPV), NPV index (PI), Internal rate of return (IRR), and weighted average cost of capital (WACC). and using sustainable development goals to analyze the non-monetary factors. The finding showed the Germany turbine was selected the most effective turbine with 5 years PP, 7 year DPP, Rp. 17.047.331.318 NPV, 33,23% PI, and 14,63% IRR with yearly ROI > 8% WACC, as compared with China turbine with 4 years PP, 7 years DPP, Rp. 24.571.564.716 NPV, 59,7% PI, and 19,55% IRR with yearly ROI > 8% WACC. This project related to SDG number one&thirteen and sensitivity analysis showed if sales decrease 10% NPV of this project is positive for Germany turbine and China turbine.

Series Title
-
Call Number
778
Publisher Place Jakarta Selatan
Collation
77p: ill; 30cm
Language
English
ISBN/ISSN
-
Classification
778
Media Type
-
Carrier Type
-
Edition
-
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Specific Info
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Statement
Content Type
text

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