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Capital budgeting model and investment strategy for phase two box dryer and dry blend facilities : a case study at PT ABC

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2024748748IPMI KalibataAvailable

Publisher :Sekolah Tinggi Manajemen IPMI , 2024

Savory business in Asia is very promising, Asian market has a market value of 252.88 trillion rupiah for savory products. Meanwhile, Indonesia has a very large percentage of all food circulation consisting of 76% of foods containing savory and another 24% is rice. Currently most of the company in Indonesia (food company) still import the top note ingredient from America, and Europe. Savory meat is the final product of the meast paste which is used in various products or processed foods. PT ABC will be the first company in Indonesia to carry out all production processes starting form meat paste-meat powder-meat savory or culinary blend. Currently a meat reactor machine has been built to produce meat paste, the next stage is to build another facility for box dryer (meat powder) and dry blender (meat savory). After did some calculation based on initial forecast for PT. ABC, then it was found that the payback period for the standard scenario was 2.86 years, 2.43 years for optimistic, and 4.05 years for pessimistic. IRR 37% for standard, 44% for optimistic, and 24% for pessimistic as well as for WACC rate is 10%. NPV for whole scenario is 251 BIDR for standard, 350.5 BIDR for optimistic, and 122.1 BIDR for pessimistic. This investment also contributes to SDG goals with several impacts on humans and the environment.

Series Title
-
Call Number
748
Publisher Place Jakarta Selatan
Collation
60p: ill; 30cm
Language
English
ISBN/ISSN
-
Classification
748
Media Type
-
Carrier Type
-
Edition
-
Subject(s)
Specific Info
-
Statement
Content Type
text

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