Capital Budgeting Analysis of Broiler Farm Construction in Central Java
Journal Title: International Journal of Current Science Research and Review - Year 2023, Vol 6, Issue 12
Abstract
Indonesia, positioned as a prominent emerging market, draws its economic strength from a diverse mix of agriculture, manufacturing, and a thriving services sector. The nation’s strategic location, coupled with abundant resources and a youthful population, forms a resilient economic foundation that has contributed to its sustained growth. One notable sector that plays a pivotal role in meeting the country’s protein needs is the poultry industry. Chicken consumption has risen to 7.41 kilograms per capita yearly, indicating a substantial 9.23% increase from 2020. Against this backdrop of economic vibrancy and shifting consumption patterns, PT.XYZ, a key player in the poultry industry, is strategically positioning itself for expansion. Recognizing the immense potential within Indonesia’s dynamic poultry sector, PT.XYZ is planning to enhance its broiler meat production capabilities through the construction of new broiler chicken farm facilities. This research endeavours to provide PT.XYZ with a comprehensive feasibility analysis for the envisioned broiler chicken farm facilities. The proposed facilities are designed to produce a significant volume, with a capacity of up to 16.8 million chickens annually, equivalent to approximately 29,3 million kilograms of chicken meat per year. The construction timeline is strategically set for two years, spanning from September 2024 to October 2026. The research findings present a compelling case for the feasibility of PT.XYZ’s ambitious broiler farm construction project. Financial indicators reveal a positive Net Present Value, an Internal Rate of Return that exceeds the Weighted Average Cost of Capital (WACC), and a Payback Period of five years, aligning with the company’s strategic plans. These results underscore the financial viability and attractiveness of the proposed expansion.
Authors and Affiliations
Guritno Suro Amijoyo,
Keywords
Related Articles
- EP ID EP725684
- DOI 10.47191/ijcsrr/V6-i12-88
- Views 54
- Downloads 0
Designing Career Management System Improvement for A Joint Venture Company
In a Joint Venture company with total manpower planning 34 people, career path becomes an issue which impacts the internal condition in the company involving employee satisfaction index and organization need fulfillment....
Business Strategy Formulation for PT Silka Teguh Sejahtera (Sciencom) to Elevate its Revenue
PT Silka Teguh Sejahtera (Sciencom) is one of Indonesia’s IT and computer training providers. In the past several years, the company faces limited revenue growth despite its strong reputation and high-quality training se...
Driving Business Growth through Data Decision Making: The Role of Marketing Automation
The business landscape has transformed significantly with the abundance of information and rapid technological advances, creating numerous opportunities for data-driven decision-making to foster company growth. This rese...
Vendor Selection in the Cosmetic Industry using Analytics Hierarchy Process (A Case Study of Saejiva Company)
The Indonesian fragrance industry, under the cosmetic industry, is growing, with an increasing income per capita in the perfume category, despite a dip in 2020. The global natural fragrance market, growing at an estimate...
Holistic Management of Diabetic Ulcer in Construction Worker with Low-Risk Neuropathy Symptoms Score and Proximal Phalanx Diggiti III-IV Pedis Dextra Amputation History
Diabetic ulcers are the most common complication of uncontrolled Diabetes Mellitus (DM), characterized by high blood glucose levels that lead to complications such as neuropathy (motor, sensory, autonomic) and vascular a...