Analysis of Financial Feasibility of Nutmeg Syrup Business (Case Study in CV. Kie Raha, Ngade Village, Ternate City)

DOI

10.2991/aer.k.200325.056How to use a DOI?

Keywords

financial feasibility analysis, nutmeg syrup, BEP, NPV, Net B/C and Payback period

Abstract

An effort on nutmeg agribusiness development can be implemented through agricultural product diversification, where the product is not only sale as primary product but it can be developed to the secondary product. The aim of this study is to analyze the financial feasibility of nutmeg syrup at KieRaha home industry in Ngade Kota Ternate as one of the biggest nutmeg syrup home industry can be used for a study case. The primary data collection is taken through observation, interview and documentation. There are some method analysis data such as Break Even Point (BEP), Net Present Value (NPV), Internal Rate of Return (IRR), Ratio B/C and Payback Period are used to identify the primary data received. The result shows that the break event point is occurring when the KieRaha home industry produced 129 bottles or with total revenue IDR 2.322.000 equal $167,25 per each production. Meanwhile, NPV calculation with interest 12 % resulted IDR 2.322.000 where the investigation at nutmeg syrup home industry will gain revenue IDR 10.590.800 for 9 years according to the present value, which means this home industry is feasible to develop because the value is positive or more than 0. Net B/C Ratio analysis resulted 1,427531083> 1, where the benefit received is outweight the cost so it possible to continue in the future. Payback Period analysis showsthat the payback period is 2 years and 10 months. Lastly, based on the financial feasibility analyze above, the nutmeg syrup home industry is adequate to continue.

Copyright

© 2020, 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  - Mila Fatmawati
AU  - Nurjanna Albaar
PY  - 2020
DA  - 2020/03/30
TI  - Analysis of Financial Feasibility of Nutmeg Syrup Business (Case Study in CV. Kie Raha, Ngade Village, Ternate City)
BT  - Proceedings of the 5th International Conference on Food, Agriculture and Natural Resources (FANRes 2019)
PB  - Atlantis Press
SP  - 281
EP  - 286
SN  - 2352-5401
UR  - https://doi.org/10.2991/aer.k.200325.056
DO  - 10.2991/aer.k.200325.056
ID  - Fatmawati2020
ER  -