A Feasibility Study of Investment on Rubber Paving Block Factory in Rayong Province

Abstract

A Feasibility Study of Investment on Rubber Paving Block Factory in Rayong Province aimed at (1 ) exploration of marketing environment of Rubber Paving Block Factory in the east region and Rayong Province (2) studying technical method in investment of rubber paving block factory and (3) analyzing financial feasibility of the project. The study used primary data obtained from participant observation and in-depth interviews while the secondary data obtained from another related academic documents and both were used in descriptive and quantitative analysis. The financial tools used for analysis were net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), profitability index (PI) and switching value test (SVT).The study results showed that the factory has the capacity of 30,000 m2 per year and the production technology of factory using is the Compression Mold. The financial result under project life of 11 years in case with BOI and Non-BOI WACC as discounted rate of 10.73 and 11.71 percent, the project was worth the investment was since NPV was 29,374,006 Baht and 33,239,582 Baht IRR was 23.55 and 26.37 percent and MIRR was 16.68 and 18.31 percent PI was 1.78 and 1.88. The SVT showed that the benefit could be down 16.03 percent, the total cost, the investment cost and the operating cost could be down 46.82, 88.03, and 24.39 percent respectively. The project risk was quite low.