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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Situmorang, Sumarno (2024) Capital budgeting model and investment strategy for phase two box dryer and dry blend facilities : a case study at PT ABC. Graduate thesis, Sekolah Tinggi Manajemen Ipmi.

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Abstract

The savory business in Asia is very promising, the 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 of 76% of foods containing savory and another 24% being rice. Currently most of the companies in Indonesia (food companies) still import the top note ingredients from America, and Europe. Savory meat is the final product of the meat 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 from meat paste, meat powder, and meat savory of 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 doing some calculation based on the initial forecast from PT. ABC, it was found that the payback period for the standard scenario was 2.86 years, 2.43 years for the optimistic, and 4.05 years for the pessimistic. The IRR is 37% for the standard, 44% for the optimistic, and 24% for the pessimistic scenario, with a WACC rate of 10%. The NPV for the whole scenario is 251 BIDR for the standard scenario, 350.5 BIDR for the optimistic scenario, and 122.1 BIDR for the pessimistic scenario. This investment also contributes to SDG goals with several impacts on humans and the environment.

Item Type: Thesis (Graduate)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Thesis > Master of Business Administration
Depositing User: Dede Faujiah
Date Deposited: 05 Feb 2024 02:45
Last Modified: 05 Feb 2024 02:45
URI: http://repository.ipmi.ac.id/id/eprint/2400

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