IJEBD (International Journal Of Entrepreneurship And Business Development)
Vol 7 No 6 (2024): November 2024

Economic Feasibility Analysis of The Construction of The Tanjung Kramat (HM. Agus) Road Section of East Kutai District

Tukimun, Tukimun (Unknown)
Marzuki, Robby (Unknown)
Anggraeny, Devita Rizky (Unknown)



Article Info

Publish Date
30 Nov 2024

Abstract

Road construction is very much needed in an effort to improve the regional economy, open access to the distribution of goods/services & people as well as in regional development efforts. This activity requires technical and economic planning to ensure that the activity is feasible to carry out. For this reason, it is necessary to conduct an analysis of the economic feasibility of constructing the Tanjung Keramat (HM. Agus) road in East Kutai Regency. This analysis uses the compound interest calculation method, Net Present Value (NPV) and Benefit Cost Ratio (BCR). The results obtained from the BOQ and RAB calculations showed that the total construction costs were Rp. 46,600,000,000.00. The results of the present value calculation over a 20 year life of construction costs + routine & periodic maintenance costs are Rp. 65,677,946,740.00. The results of calculating the benefits of Vehicle Operational Costs (BOK) for BENEFITS' current value are IDR 276,921,095,567.00. The results of the economic feasibility are declared "WORTH IT" to run because the results of the calculation of the NPV value are IDR 276,921,095,567.00 > than 1 and the BCR value is 4.22 > 1 NVP>1 so that the investment in road construction is a "WORTH IT" investment to carry out.

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Journal Info

Abbrev

ijebd

Publisher

Subject

Economics, Econometrics & Finance

Description

Focus and Scope IJEBD International Journal of Entrepreneurship and Business Development is an international, peer-reviewed journal publishing articles on all aspects of Entrepreneurship and Business Development. All accepted articles will be published on payment of an article-processing charge, and ...