GUIDELINE MODULE 10 FEASIBILITY & SENSITIVITY ANALYSIS Maria DellarosawatiI., S.T., M.B.A ASSISTANT TEAM : Rizky C. A. | Auliya Z. 1M. Raihan H. | Pande Putu N. S. | Elsa F. | Nadira V. A. | Sevina Q. | Reza R. R. F. | Rika E. O. T. | Salsabila P. I. S.| Aura S. S. | Almeida N. P. D. | Fajar N. | Yosita D. S. 1 » Shafira N. P. | Alfred K. -GUIDELINE MODULE 10 FEASIBILITY AND SENSITIVITY ANALYSIS PRACTICUM OBJECTIVES Students are able to understand the financial feasibility of a company 2. Students are able to process financial data using financial aspects methods of feasibility study 3. Students are able to do evaluation and able to understand the calculation of feasibility study, 4 Students are able to analyze the sensitivity of a company REQUIREMENT 1. Excel sheets Oth Module - 9th Module 2. Stationary 3. Caleulator LAB WORK PROCEDURE 2 3. 4. 5 Determine feasibility analysis of company Calculate income statement raw material of company Determine sensitivity raw material analysis of company. Calculate income statement selling price of company Determine sensitivity selling price of company. peel compen ascone‘»” STUDY CASE In module 10 is the last stage, that is the determination of business feasibility in a business, For the study case or business feasibility, the company is required to complete several series of stages that have been completed before there are market aspect, technical aspect, ‘management aspect up to the main stage, is financial aspect. There are several stages of determination of business feasibility: knowing feasibility analysis, calculating raw material sensitivity data and raw material sensitivity, calculating selling price sensitivity data and the last determining selling price sensitivity First, determining feasibility analysis is a way to determine whether or not an effort is carried out. Through the analysis of financial benefits, there are several criteria that can be used to determine whether or not a business is conducted, namely NPV (Net Present Value), Payback Period, IRR. Second are calculate data and analyze raw material sensitivity because the company is also experiencing constraints due to frequent increases in raw materials that greatly affect the price of production in case of increase and uncertainty of ordering Third calculate data and analyze selling price because the results of data analysis related to the determination of the selling price of products in an effort to increase net profit in the Company then obtained several factors including the purchase price of the product, sales costs, the amount of profit expected and other factors. peel compen ascone‘el name bas Beas south ow | te hare tat NPVs 207 net 0 Pare Notes: ea ae Initial Cash Flow (Cash Out) = Needs to running the company (Source of Funds, Module 8b Financial Aspect 1) (only on 2023). Operational Cash Flow (cash in) = EAIT + Depreciation (facility & machine, tools, transportation, general administration) + Amortization (SIUP, trademark price) + Interest Expense (1-tax) (Profit Loss, Module 8b Financial Aspect 1), (Start on 2023) Net Cash = Cash in - Cash out p/f Factor is Interest expense of bank, the amount of interest expense follows the bank's policy used (Based on selected bank rated in 2023) Formula: = I/POWER(1+interest rate; period) NPV = Net Cash*p/f Factor NPV Cumulative = NPVt + NPV cumulative t-1 NPV = NPV Cumulative at the end of the period Interest Rate (Based on selected bank rated in 2023), peel compen asconer =8- Payback Period = the first positive period + ((0- the first positive of NPV Cummulative) / (first positive of NPV Cumulative - the last negative)) 2. Determine IRR Formulation of linier interpolation ) reine em sed nthe caedabonesd A conan eases P-Siaens819% inca tr wuld be mph Notes: 1, Net Cash = According to Net Cash in NPV & PBP 2. pif factor in IRR using Formulation of linier interpolation Formula: =1/POWER(+interest rate;period) 3. Inthe first one is positive in NPV Cumulative and the second is negative in NPV Cumulative (trial and eror) NPV = Net Cash*p/f Factor 4. NPV Cumulative = NPVt + NPV cumulative t-1 5. IRR NPV + 2nd cumulative NPV))#(2nd interest rate + Ist interest rate) first interest rate + (Ist positive cumulative NPV / (Ist positive cumulative 6. Raw Material Cost are sensitive to an increasing up to = Increase Percentage 1+(Positive NPV / (Positive NPV-Negative NPV)) * (Percentage of Increment2 - Percentage of Increment!) peel compen ascone#THINKECONOMICMOREINOVATIVE a % Percentage increase | = positive NPV result r e ~ Percentage increase 2 = negative NPV result Step 2 : Raw Material Sensitivity Data perrenerennreerrrtt eo MODULE 10 #THINKECONOMICMOREINOVATIVENOTE: the percentage of reduction is according to Sales Revenue (CASH FLOW, MODULE 9 FINANCIAL ASPECT 2) Other Income (Scrap Sales) (CASH FLOW, MODULE 9 FINANCIAL ASPECT 2) Initial Supply of Finished Good Product (PROFIT LOSS, MODULE 8B FINANCIAL. ASPECT 1) Direct Material Cost = Direct material costs * (1 + percent increase in direct raw material) Direct Labor Salary (PROFIT LOSS, MODULE 8B FINANCIAL ASPECT 1) Total Factory Overhead Cost (PROFIT LOSS, MODULE 8B FINANCIAL ASPECT » Total Cost of Goods Manufactured (Harga Pokok Produksi) = Total Direct Cost + Total Ovethead Factory Cost Available Finished Good for Sale = Total Cost of Goods Manufactured + Initial Supply of Finished Good Product Availibility Finished Product = Final Inventory * Selling Cost Rounding/Produet (COST OF GOODS SOLD, MODULE 8B FINANCIAL ASPECT 1) Gross Profit (Income Before Operation) = Total Income - Total Cost of Goods Sold (Harga Pokok Penjualan) EBIT = Gross Profit (Income Before Operation) - Total Operational Cost EBT = EBIT - Interest Expense EAIT = EBT- TAX and error peel compen asconeeat) Sensitivity Analysis of Raw Material Based on sensitivity analysis toward raw material. It was obiained to be sensitive in increasing about 39,23%. Notes: 1. All of data are same with NPV data in sheet of FEASIBILITY ANALYSIS MODULE. 10 2 Except + Cash In + EAIT, Interest Expense, Tax (RAW MATERIAL SENSITIVITY DATA, MODULE 10 FEASIBILITY ANALYSIS) * Depreciation, Amortization (PROFIT LOSS, MODULE 8B FINANCIAL, ASPECT 1 peel compen asconeZz, 7 #THINKECONOMICMOREINOVATIVE =, pif Factor because to define an Increase in Raw Material using linier Interpolasi e formula. NOTE: the percentage of reduction is according to trial and error Step 3: Si “Tae of Selig Prodet Pie Caen MODULE 10 dy |, #THINKECONOMICMOREINOVATIVE hsZz, 7 #THINKECONOMICMOREINOVATIVE Notes: ~ Table of selling Product Price Calculation: All of data are same with COST OF GOOD SOLD, MODULE 8B FINANCIAL ASPECT 1 Except: Company's Profit = COGS/Product * Percent Profit Selling Cost / Product = (Cost of Good Sold per Produet + Company Profit) * (1- percentage reduction in selling price) NOTE: the percentage of reduction is according to trial and error ~ Sales revenue = selling cost rounding / product * selling volume - Other Income (Scrap Sales) (CASH FLOW, MODULE 9 FINANCIAL ASPECT 2) ~ Initial Supply of Finished Good Product = selling cost rounding/product previous year final inventory previous year - Total Factory Overhead Cost (PROFIT LOSS, MODULE 8B FINANCIAL ASPECT 1) MODULE 10 > ##THINKECONOMICMOREINOVATIVE hsr —Tptal Cost of Goods Manufactured (Harga Pokok Produksi) = Total Direct Cost + Total Overhead Factory Cost Available Finished Good For Sale = total COGM + Initial Supply of Finished Good Product Availability Finished Product = Final inventory * selling cost rounding/product (COST OF GOOD SOLD, MODULE 8B FINANCIAL ASPECT 1) Gross Profit (Income Before Operation) = Total Income - Total Cost of Goods Sold (Harga Pokok Penjualan) EBIT = Gross Profit -Total Operational Cost EBT = EBIT - Interest Expense - TAX =%TAX * EBT EAIT BT- TAX NOTE: the percentage of reduction is according to trial and error Formulation of Linier Interpolation rat get ptt ns peel compen ascone‘Sensitivity Analysis of Selling Price Based on sensivity analysis toward sellin price It was obtained 10 be sensitive in dereasing about 11,78%, Notes: 1, Alll of data are same with NPV data in sheet of FEASIBILITY ANALYSIS MODULE 10 Except = Cash in: * EAIT, Interest Expense, Tax (SELLING PRICE SENSITIVITY DATA, MODULE 10 FEASIBILITY ANALYSIS) © Depreciation, Amortization (PROFIT LOSS, MODULE 8B FINANCIAL ASPECT 1 ~ Pi Factor, because to define SELLING PRICE SENSITIVITY using linier interpolation formula NOTE: the percentage of reduction is according to trial and error peel compen ascone