The Financial and Economic Feasibility Analysis: A Value-Added Approach

Sahri, Sahri and Tajidan, Tajidan and Sukardi, L and Fahrudin, Fahrudin and Candra, Ayu and Husni, Syarif and ZULKIFLI, ZULKIFLI (2022) The Financial and Economic Feasibility Analysis: A Value-Added Approach. Sales Expansion of Agro-Industrial Products Through E-Commerce: A Gender Analysis Approach, 17 (2). pp. 17-33. ISSN 1659-3359

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Abstract

The author introduces value-added analysis as a novel analytical method for assessing the financial and economic feasibility of business activity to broaden knowledge. Using the value-added analysis method in the feasibility analysis is based on the presence of elements of revenue and consumable costs in the calculation of added value without considering the amount or wages and profits. So, if the added value exceeds the labor wages, the entrepreneur makes a profit. Through a case study in tobacco farming, the author demonstrates that the value-added approach can be used to analyze financial and economic feasibility and is equipped with ready-to-use applications. The research was carried out on 30 Kasturi tobacco farming units spread across three sub-districts in the West Lombok Regency, namely Sekotong, Sheet, and Gerung District, from May to July 2022. The financial feasibility analysis results show that the added value of musk tobacco farming is Rp. 33,820,555/llg, which is greater than the labor wage of Rp. 20,800,800/llg, while the economic feasibility analysis result shows that the added value of musk tobacco farming is Rp. 25,656,000/ha, so musk tobacco farming is feasible. The feasibility analysis results using the added value approach are consistent with the B/C ratios analysis, greater than 1.06, e.g., 1.5175, and 1.7619.

Item Type: Article
Keywords (Kata Kunci): Key account management performance, stochastic frontier analysis, ready-made garments industry, Bangladesh
Subjects: S Agriculture > S Agriculture (General)
Divisions: Fakultas Pertanian
Depositing User: Ir. Syarif Husni , M. Si
Date Deposited: 01 Jul 2023 10:00
Last Modified: 01 Jul 2023 10:00
URI: http://eprints.unram.ac.id/id/eprint/40685

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