Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the last few years, the business of onion farmers has been in great demand as an alternative business that promises to be profitable. More

image text in transcribed
In the last few years, the business of onion farmers has been in great demand as an alternative business that promises to be profitable. More and more people are choosing onion farming as a means of investment or a source of income, either as a side business or as a main income. The onion farmer business managed by Mr. Soleh is one of the shallot planting businesses that is used as the main income. The shallot planting business carried out by Mr. Soleh in Wulungsari village, Baniarnegara subdistrict, where the business was initiated in 2005 or 1? years ago. For investors, the government, banks, and the onion farmers themselves, it is important to know whether the business is feasible or not to be developed or invest in onion farmers' businesses. Therefore, it is necessary to conduct a feasibility study for this shallot farming with the aim of knowing the longterm prospects, losses and advantages of establishing a business. The methods used are market and marketing aspects, technical and production aspects, organizational and management aspects, and financial aspects. Based on the income generated during his time as a shallot farmer, Mr. Soleh has an initial capital of g. 11500000, where the assumed profit is around g. $300,000, fyear. By calculating the investment feasibility in the form of Payback Period {PP}, Net Present l.l'alue (NPW of 10%, Internal Rate of Return {IRE} between 6% and T96, and Profitability Index {PI}. The business establishment plan requires a feasibility study analysis to assess whether the project proposal can be accepted or rejected. Question: 1. Mention the aspects of the Business Feasibility Analysis carried out in accordance with the case study above. Tell. 2. Explain from the financial aspect assuming the investment period is 3 years 3. What do you think of the feasibility analysis on this business

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

Concise 6th Edition

324664559, 978-0324664553

More Books

Students also viewed these Finance questions