Financial Feasibility Analysis of Palm Sugar Business in Negeri Eti, West Seram Regency

Abstract

he research on palm sugar business in Negeri Eti, West Seram Regency was conducted with the aim of assessing the financial feasibility of the palm sugar business in Negeri Eti, West Seram Regency using financial feasibility analysis. The respondent selection technique in this study was the purposive sampling technique. Data were collected through several techniques, namely interviews with business actors, direct observation in the field and also library techniques. The analysis method used in this study was financial analysis, including the calculation of NPV, IRR, PP and B/C Ratio to determine the financial feasibility of the palm sugar business in Negeri Eti, West Seram Regency. The results of the Financial Feasibility Analysis calculation show that the palm sugar business in Negeri Eti is FEASIBLE to be developed with a Payback Period (PP) value of 0.83 or for approximately 10 months, a Net Present Value (NPV) of IDR 22,140,000 or a positive value indicating the present value of the expected cash flow is greater than the initial investment cost, an Internal Rate Of Return (IRR) of 41.2% or greater than the prevailing interest rate, and a Benefit and Cost (B/C) of 1.65 or greater than 1 indicating that the benefits obtained are greater than the costs incurred.