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Journal : Al-Kharaj: Jurnal Ekonomi, Keuangan

The Financial Feasibility of Launching a New Product at PT. Refractorindo Graha Dinamika Muhammad Anandito Attaya; Isrochmani Murtaqi
Al-Kharaj: Jurnal Ekonomi, Keuangan & Bisnis Syariah Vol. 7 No. 3 (2025): Al-Kharaj: Jurnal Ekonomi, Keuangan & Bisnis Syariah
Publisher : Intitut Agama Islam Nasional Laa Roiba Bogor

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47467/alkharaj.v7i3.6313

Abstract

This study investigates the financial feasibility of launching a new product—plastic refractories—at PT. Refractorindo Graha Dinamika. The company aims to diversify its offerings while maintaining competitiveness in Indonesia's growing refractory market. The study employs a structured methodology that begins with a comprehensive business environment analysis using PESTLE and Porter’s Five Forces frameworks, then calculates the company’s Weighted Average Cost of Capital (WACC), and constructing a detailed five-year cash flow projection. Capital budgeting metrics—Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), Payback Period (PP), and Discounted Payback Period (DPP)—are applied to evaluate the financial feasibility of investing in three locally sourced manufacturing machines essential for producing plastic refractories. The results indicate that the new product is financially feasible, with a positive NPV, an IRR exceeding the WACC, and acceptable payback periods. Sensitivity analysis using Monte Carlo simulation further assesses the impact of uncertainties in sales volume on financial outcomes. The study offers insights for PT. Refractorindo Graha Dinamika’s management regarding the decision whether to accept or reject the acquisition of new capital investments.