Business Feasibility of Mocaf Flour Products, Cassava Starch, Purple Sweet Potato and Yellow Yams

Etty Soesilowati*, Nana Kariada Tri Martuti and Octavianti Paramita
Additional contact information
Etty Soesilowati*: Faculty of Economics, Semarang State University, Indonesia
Nana Kariada Tri Martuti: Faculty of Mathematics and Science, Semarang State University, Indonesia
Octavianti Paramita: Faculty of Technics, Semarang State University, Indonesia

The Journal of Social Sciences Research, 2020, vol. 6, issue 2, 167-172

Abstract: Feasibility analysis of tuber flour production business aims to determine its profitability. The study used a quantitative approach with a sample of SME UD. Berkah, Semarang. The variables include investment costs, working capital, and profits. Data were analyzed using Cost & Benefit Ratios, Payback Period, Net Present Value, and International Rate of Return. The results show that to produce 4,000 kg/month of tuber into flour requires an investment cost of IDR. 120,800,000. With depreciation of IDR. 671,083,- per year, the income of IDR. 9,150,000 per month can be earned or 23.8% per year. The payback period is estimated to be 1.1 years with an internal rate of return of 84.28%. Hence, it can be concluded that the business of producing mocaf flour, cassava starch, cassava, purple yam flour and yams is feasible. Flour producers should increase the production capacity by building business networks ranging from tuber farmers to the users.

Keywords: B/C ratio; Payback period; NPV; IRR; Tuber flour. (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.arpgweb.com/pdf-files/jssr6(2)167-172.pdf (application/pdf)
https://www.arpgweb.com/journal/7/archive/02-2020/2/6 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arp:tjssrr:2020:p:167-172

Access Statistics for this article

The Journal of Social Sciences Research is currently edited by Dr. Paola Magnano

More articles in The Journal of Social Sciences Research from Academic Research Publishing Group Rahim Yar Khan 64200, Punjab, Pakistan.
Bibliographic data for series maintained by Managing Editor ().