Business Feasibility Training Using Cash Flow Pattern with Period Payback Method, Net Present Value, Profitability Index, Internal Rate of Return on Azka Water Padang Business

Abstract

Azka Water is a business unit engaged in the distribution of gallon bottled water. MSMEs owned by Mrs. Haryenti Gusti addressed cimpago Permai I Block C No. 1 Limau Manis Padang Housing Complex is a prospective business because at the age of only two years has generated considerable income. Azka Water market segmentation is all circles and ages, especially Rmah Tangga around the Cimpago Complex. The target market is the community around the Cimpago Complex, complexes and housing located in the area of sweet limes even up to the Lubuk Area of the refinery. From the calculations carried out, the NPV > 0 (zero) and the IRR value > Opportunity Cost of Capital (OCC) is 15% per year. In addition, the payback value of the > period 1 and the Profitability Index also > 1. This shows that the effort is feasible to run. Sensitivity analysis on Azka Water's business also implies that it is acceptable and Azka Water's business is feasible to run.
Keywords : Cash Flow, Payback Period, Net Present Value, Profitability Index, Internal Rate of Return