Investment Feasibility Study Analysis on the Protected Water Supply System (SPAM) Project

DOI

10.2991/aebmr.k.210717.028How to use a DOI?

Keywords

analysis of project feasibility studies, investment

Abstract

The objective of this study is to determine the feasibility of an investment in a drinking water supply system (SPAM) project in Gresik. Investment feasibility research is research into whether or not an investment project is feasible. The methodology used in this study there are three methods, namely: (1) Net Present Value (NPV) method, (2) Internal Rate of Return (IRR) method, and (3) Payback Period (PP) method. The results of the analysis of the feasibility study using the WACC. The calculation result of the Net Present Value (NPV) is positive and the value of the Internal Rate of Return (IRR) is greater than the WACC, so that the Drinking Water Supply System (SPAM) Project is declared feasible. The Payback Period for the investment using the Payback Period method is also feasible in terms of return on capital.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Firda Rahmawati
AU  - Sugeng Sulistiono
AU  - Fita Setiati
PY  - 2021
DA  - 2021/07/19
TI  - Investment Feasibility Study Analysis on the Protected Water Supply System (SPAM) Project
BT  - Proceedings of 2nd Annual Management, Business and Economic Conference (AMBEC 2020)
PB  - Atlantis Press
SP  - 133
EP  - 137
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210717.028
DO  - 10.2991/aebmr.k.210717.028
ID  - Rahmawati2021
ER  -