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A Feasibility Study on the Expansion of Production Capacity of CV XYZ Susanto, Fabian Aditya
Journal of Business, Management, and Social Studies Vol. 3 No. 4 (2023): Journal of Business, Management, and Social Studies
Publisher : APPS Publications

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53748/jbms.v3i4.82

Abstract

Objective – This feasibility study aims to analyze whether or not this project will be profitable for the company and to understand what can the owner of the company expect regarding the return of this investment. Methodology – The study has employed a quantitative approach to evaluate the feasibility of expanding the handbag and backpack manufacturing company, CV XYZ. The specific techniques include NPV, IRR, profitability index, and payback period. Findings – The analysis shows that the project has a positive net present value at 15% discount rate, a 21% internal rate of return, and a profitability index of 1.29. This shows that the expansion should be implemented as it will be a profitable investment. Novelty – The study essentially conducted a standard feasibility analysis for a business expansion project. While the specific context is a handbag and backpack manufacturing company, the methodology and analysis are typical for such projects.