Imam Sofyan Lubis
Faculty of Economics and Business, Pamulang University

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Sensitivity Analysis of Investment Feasibility Assessments and Monte Carlo Risk Analysis in High-Profile Real Estate Companies Imam Sofyan Lubis; Sugiyanto Sugiyanto; Zulfitra Zulfitra
Journal of Applied Business, Taxation and Economics Research Vol. 5 No. 6 (2026): August 2026
Publisher : PT. EQUATOR SINAR AKADEMIA

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54408/jabter.v5i6.640

Abstract

This study aims to analyze the feasibility of investment development using investment analysis methods, including the payback period (PP), Net Present Value (NPV), Internal Rate of Return (IRR), and profitability index, which are part of the capital budgeting method. Furthermore, this study is expected to provide a framework for financial feasibility studies with various scenarios. Through calculations using the PP, NPV, and IRR methods, it is hoped that property companies can make decisions and analyze whether investment capital can be returned according to a predetermined schedule with an acceptable level of risk. Additionally, this study evaluates the risks that may arise during the development process using Monte Carlo sensitivity analysis. Based on the research findings, the researcher concludes that investment development using PP, NPV, IRR, and PI in high-profile property projects is feasible. The development of high-profile property projects using Monte Carlo simulations involves elements of uncertainty.