FEASIBILITY STUDY OF SUBSIDIZED HOUSING PROJECT BY PT. XYZ IN DELI SERDANG REGENCY, NORTH SUMATERA PROVINCE, INDONESIA

Dimitria Maria Indahsari Siagian; Mandra Lazuardi Kitri

Volume : IX, Issue : VI, June - 2020

FEASIBILITY STUDY OF SUBSIDIZED HOUSING PROJECT BY PT. XYZ IN DELI SERDANG REGENCY, NORTH SUMATERA PROVINCE, INDONESIA

Dimitria Maria Indahsari Siagian, Mandra Lazuardi Kitri

Abstract :

Deli Serdang is the regency of North Sumatra that provides accessible, safety and comfortable environment as a place to live. PT. XYZ is a property business that has plan to make an investment by building subsidized housing for low income communities in Indonesia. The company will use the equity of the company which amounts to IDR 13,054,005,556 and the remaining will be financed by using debt of IDR 4,000,000,000. PT. XYZ has not made a financial feasibility study for this investment project in order to provide information that will help the Board of Director to decide the implementation of the project and assess the risk in implementing the project. The results show that the Net Present Value of the project is IDR 7,633,426,960.54 which shows positive values, the profitability index is 1.78 that is greater than 1, the IRR is 38.75% that is higher than the cost of capital, and the payback period of the project is 2 years 1 months 10 days. Based on the all the techniques, the result shows the investment project is feasible to be implemented by PT. XYZ. In the risk analysis, there are 3 variables that can be considered as sensitive variable to the project’s NPV which consist of the price per house, quantity sold per month, and house building cost per house. The recommendation to the company will be given regarding the price per house, quantity sold per month, and house building cost per house in order to achieve the company’s goal in this project.