Feasibility analysis of Rumah Tempe Zanada establishment in Bandung using net present value, internal rate of return, and payback period

Abstract

Rumah Tempe Indonesia was established based on the desire of KOPTI committee (Indonesian Tempe Tofu Producers Cooperative), Indonesian Tempe Forum, and Mercy Corps that want some changes in production process that can be used as references of ideal production place of tempe producer which prioritizes hygienic production process. As a pioneer of the establishment of a tempe hygienic production house, Rumah Tempe Indonesia opened its new business into Rumah Tempe Zanada which was established in Bandung. In establishing this business, a research study was conducted to ensure the is feasible. Using literature study and interview as the data collecting method, a feasibility study is conducted on the market, technical, and financial aspects of the establishment of Rumah Tempe Zanada for 5 years as the calculating period. The business is concluded to be feasible as in the financial aspect with the total of project cost at value Rp 765,427,036 by calculating the IRR which is 19% using MARR is equal to 10.25%, and estimated Payback Period from Tempe Zanada Home is 4 years, 6 months and 17 days. Meanwhile, the result of the NPV amount of this investment is Rp 260,380,763.