INVESTMENT ANALYSIS OF INTEGRATION PROJECT (CASE STUDY: PT BANDUNG XYZ)

Abstract

This study aims to determine the investment analysis of integration project at PT Bandung XYZ and analyse the most sensitive variable to the feasibility study of the project. PT. Bandung XYZ is one of the creative industry players in the city of Bandung, West Java with its flagship product ABC Sandals. The company has plans to integrate the factory and warehouse locations into one area which is currently in a different location. This investment classified as an investment in a replacement project. The research methodology includes an internal analysis from the company side, an external analysis that looks at the conditions of the creative industry in Indonesia and financial replacement feasibility study analysis to determine the capital budgeting variable Then, a risk analysis will be carried out to determine the variables that affect the feasibility of the project. We found that; this project is feasible to do with the Net Present Value (NPV) variable of IDR 3,993,723,014, Internal Rate of Return (IRR) of 33.87%, Payback Period for 3 years and 4 months and a Profitability Index (PI) of 1,96. Risk analysis shown that the probability of the NPV is smaller than zero is 0.26%. The results of this study are expected to provide the investment analysis so that the company can choose the best decisions and strategy to improve their business related to every risk in this project.