Capital Budgeting Model and Sensitivity Analysis of the Project Feasibility in Vietnam for the Period of 2019-2037

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Mentari, Dini and Daryanto, Wiwiek Mardawiyah (2018) Capital Budgeting Model and Sensitivity Analysis of the Project Feasibility in Vietnam for the Period of 2019-2037. International Journal of Business, Economics and Law, 17 (2). pp. 21-28. ISSN 2289-1552

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Abstract

Oil and gas sector has long been a major pillar of the economics of Indonesia before the fall in oil prices in 2013. In 2016, this sector contributed USD 23.7 Billion to the country’s GDP, or about 3.3 % of the country’s economy. However, the total of oil and gas production declined around 4.41% per year since 2007, and the sharpest decline was in 2013. This situation gave impact to the performance of the industry, especially to the government revenues. The purpose of this study is to measure the feasibility of oil and gas industry investment project as an option to generate other revenue stream in a foreign country, Vietnam,for the period of 2019 – 2037. Capital Budgeting Model indicators: Payback Period, Return on Investment (ROI), Net Present Value (NPV), NPV Index, Discounted Payback Period, and Internal Rate of Return (IRR) were used to analyze the data, and sensitivity analysis. The calculation shows that the capital budgeting indicators fulfilled the standard required. This study will be beneficial for the investor to explore other revenue stream opportunity to generate higher return. Keywords: Capital budgeting model, net present value, internal rate of returns, project feasibility, other revenue

Item Type: Article
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Divisions: Research And Community Empowerment > Journals
Depositing User: Rizky Amalia
Date Deposited: 16 Jan 2020 04:49
Last Modified: 22 Dec 2021 04:45
URI: http://repository.ipmi.ac.id/id/eprint/43

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