PIG
INTRODUCTION
I MEANING OF PROJECT FEASIBILITY STUDY
Recently, feasibility studies have been widely recognized by the public, especially those engaged in the business sector,
and it is possible that the government, especially in the field of project financing, has also become familiar with the theory of
project feasibility studies. Various opportunities and opportunities that exist in the activities of the business world as well as
those managed by the government have required an assessment of the extent to which these activities/opportunities can provide
benefits/benefits when exploited. Activities to assess the extent to which benefits/profits that can be obtained in carrying out a
business/project activity are called Project/Business Feasibility Studies.
Thus a feasibility study which is also often referred to as a feasibility study is a consideration in making a decision, whether
to accept or reject a planned business/project idea. The definition of proper in this assessment is the possibility that the business
idea/project that will be implemented will provide benefits, both in terms of financial benefits and in terms of social benefits . Like
a business/project idea in the sense of social benefits , it does not always describe it as feasible in terms of financial benefits ,
this depends on the point of view of the assessment being carried out.
, For example , rural electricity development projects have had a positive impact on various rural community activities, both
in terms of increasing income, employment absorption, expanding employment opportunities, changing people's mindsets,
improving education, and various other positive impacts as a result of the existence of rural electricity . . This situation, when
calculating the benefits in terms of social benefits , there is a tendency that rural electrification is feasible to develop. Conversely,
when viewed from an investment point of view, rural electrification projects require relatively large amounts of investment funds,
both due to the scattering of rural houses besides the distance between one village and another, as well as the small number of
customers served so that the financial benefits obtained through collection accounts provided by the community in relatively
small amounts. This situation when viewed from the perspective of financial benefits , there is a tendency to open rural
electrification projects that are not feasible to develop. Based on this description, the feasibility of a project can be seen from the
point of view and evaluation given to the project. In general, projects assessed in terms of social benefits are projects
implemented by the government and social organizations, such as building roads/bridges, hospitals, amusement parks, schools,
and so on which have a positive impact on the economy of society as a whole. whole.
So it is concluded that, business activities/projects that prioritize social benefit assessment rather than financial benefits
are often referred to as PROJECT EVALUATION ANALYSIS, and business activities/projects that prioritize financial benefits
rather than social benefits are often referred to as BUSINESS FEASIBILITY STUDY ANALYSIS. Judging from the scope of the
discussion, THE PROJECT EVALUATION ANALYSIS is broader than THE BUSINESS FEASIBILITY STUDY ANALYSIS , because
the business feasibility study prioritizes the feasibility of a business idea from the perspective of the individual entrepreneur.
, It is also possible that this business feasibility study calculation technique is also needed for those who want to develop
or are currently operating a small and medium business. Where in the development of his business later , or in his later
exploitation, an entrepreneur will try to get additional funds/capital from bank loans. Of course, when applying for a loan from a
bank, an entrepreneur is asked by the bank to prepare a business plan proposal or business development plan. After the proposal
is received by the bank, generally the bank will conduct a feasibility study on the business plan or business development plan of
the borrower. Feasibility studies by banks are generally carried out in ways such as visual feasibility studies on site, which are
called surveys, and feasibility studies by carrying out calculations based on the proposals submitted by the borrowing customer,
so that the bank is finally willing to provide loans to the borrowing customer. Of course, here special expertise is needed in
estimating whether the business plan can be declared feasible or not by the bank so that an entrepreneur needs to revise his
proposal before submitting it to the bank to get a loan.
In this text, several techniques for calculating business and project feasibility studies will be presented using methods
such as:
1. NPW (net present worth) analysis or NPV (net present value) analysis
2. ROR (rate of return) analysis
3. Cost Benefit Ratio (B/C ratio) analysis, and others
II General Learning Objectives
, So that training participants are able to evaluate a project or business / business based on the business plan proposals
that have been made.
III Specific Learning Objectives
So that training participants are able to use existing calculation techniques to evaluate a business sector or project from
the proposals that have been made.
CHAPTER II
CALCULATION OF INTEREST AND VALUE OF MONEY
II.1 COMPOUND INTEREST ( COMPOUND INTEREST )
Compound interest is usually carried out over a relatively long period of time and interest calculations are usually carried
out for more than one period. Thus, compound interest is interest that continues to become capital if it is not taken on time. Pay
attention to the following compound interest payment systems:
Initial The amount of
year to + = Total capital at the
capital interest end of the period
INTRODUCTION
I MEANING OF PROJECT FEASIBILITY STUDY
Recently, feasibility studies have been widely recognized by the public, especially those engaged in the business sector,
and it is possible that the government, especially in the field of project financing, has also become familiar with the theory of
project feasibility studies. Various opportunities and opportunities that exist in the activities of the business world as well as
those managed by the government have required an assessment of the extent to which these activities/opportunities can provide
benefits/benefits when exploited. Activities to assess the extent to which benefits/profits that can be obtained in carrying out a
business/project activity are called Project/Business Feasibility Studies.
Thus a feasibility study which is also often referred to as a feasibility study is a consideration in making a decision, whether
to accept or reject a planned business/project idea. The definition of proper in this assessment is the possibility that the business
idea/project that will be implemented will provide benefits, both in terms of financial benefits and in terms of social benefits . Like
a business/project idea in the sense of social benefits , it does not always describe it as feasible in terms of financial benefits ,
this depends on the point of view of the assessment being carried out.
, For example , rural electricity development projects have had a positive impact on various rural community activities, both
in terms of increasing income, employment absorption, expanding employment opportunities, changing people's mindsets,
improving education, and various other positive impacts as a result of the existence of rural electricity . . This situation, when
calculating the benefits in terms of social benefits , there is a tendency that rural electrification is feasible to develop. Conversely,
when viewed from an investment point of view, rural electrification projects require relatively large amounts of investment funds,
both due to the scattering of rural houses besides the distance between one village and another, as well as the small number of
customers served so that the financial benefits obtained through collection accounts provided by the community in relatively
small amounts. This situation when viewed from the perspective of financial benefits , there is a tendency to open rural
electrification projects that are not feasible to develop. Based on this description, the feasibility of a project can be seen from the
point of view and evaluation given to the project. In general, projects assessed in terms of social benefits are projects
implemented by the government and social organizations, such as building roads/bridges, hospitals, amusement parks, schools,
and so on which have a positive impact on the economy of society as a whole. whole.
So it is concluded that, business activities/projects that prioritize social benefit assessment rather than financial benefits
are often referred to as PROJECT EVALUATION ANALYSIS, and business activities/projects that prioritize financial benefits
rather than social benefits are often referred to as BUSINESS FEASIBILITY STUDY ANALYSIS. Judging from the scope of the
discussion, THE PROJECT EVALUATION ANALYSIS is broader than THE BUSINESS FEASIBILITY STUDY ANALYSIS , because
the business feasibility study prioritizes the feasibility of a business idea from the perspective of the individual entrepreneur.
, It is also possible that this business feasibility study calculation technique is also needed for those who want to develop
or are currently operating a small and medium business. Where in the development of his business later , or in his later
exploitation, an entrepreneur will try to get additional funds/capital from bank loans. Of course, when applying for a loan from a
bank, an entrepreneur is asked by the bank to prepare a business plan proposal or business development plan. After the proposal
is received by the bank, generally the bank will conduct a feasibility study on the business plan or business development plan of
the borrower. Feasibility studies by banks are generally carried out in ways such as visual feasibility studies on site, which are
called surveys, and feasibility studies by carrying out calculations based on the proposals submitted by the borrowing customer,
so that the bank is finally willing to provide loans to the borrowing customer. Of course, here special expertise is needed in
estimating whether the business plan can be declared feasible or not by the bank so that an entrepreneur needs to revise his
proposal before submitting it to the bank to get a loan.
In this text, several techniques for calculating business and project feasibility studies will be presented using methods
such as:
1. NPW (net present worth) analysis or NPV (net present value) analysis
2. ROR (rate of return) analysis
3. Cost Benefit Ratio (B/C ratio) analysis, and others
II General Learning Objectives
, So that training participants are able to evaluate a project or business / business based on the business plan proposals
that have been made.
III Specific Learning Objectives
So that training participants are able to use existing calculation techniques to evaluate a business sector or project from
the proposals that have been made.
CHAPTER II
CALCULATION OF INTEREST AND VALUE OF MONEY
II.1 COMPOUND INTEREST ( COMPOUND INTEREST )
Compound interest is usually carried out over a relatively long period of time and interest calculations are usually carried
out for more than one period. Thus, compound interest is interest that continues to become capital if it is not taken on time. Pay
attention to the following compound interest payment systems:
Initial The amount of
year to + = Total capital at the
capital interest end of the period
