FEASIBILITY STUDY OF FINANCIAL DEVELOPMENT OF NILAM

Abstract

The background of the study was that there needs to be available information on factors that influence income/and profits in the feasibility of a patchouli commodity development business. This study analyzed the feasibility of investing in developing patchouli commodities in several regions, both on an individual and industrial scale. Investment analysis studies were carried out to see whether or not a business is feasible from a financial perspective besides being used as a material consideration in determining business decisions. The method used is a literature study using secondary data obtained from eleven journals which include analysis criteria for Net B/C, NPV, IRR, and PP as the main criteria and PI, BEP, ARR, and ROI as supporting criteria. Based on the results of a study on Medium Scale Patchouli Agroindustry Development in East Java, this was the most viable investment based on NPV and IRR calculations. Meanwhile, the Feasibility Analysis of the Patchouli Oil Refining Business in North Luwu Regency, South Sulawesi, was a business that has the smallest payback period.

Keywords: patchouli, agroindustry, capital budgeting, investment feasibility