Investment Feasibility Study Analysis on the Protected Water Supply System (SPAM) Project

Abstract

The objective of this study is to determine the feasibility of an investment in a drinking water supply system (SPAM) project in Gresik. Investment feasibility research is research into whether or not an investment project is feasible. The methodology used in this study there are three methods, namely: (1) Net Present Value (NPV) method, (2) Internal Rate of Return (IRR) method, and (3) Payback Period (PP) method. The results of the analysis of the feasibility study using the WACC. The calculation result of the Net Present Value (NPV) is positive and the value of the Internal Rate of Return (IRR) is greater than the WACC, so that the Drinking Water Supply System (SPAM) Project is declared feasible. The Payback Period for the investment using the Payback Period method is also feasible in terms of return on capital. Keywords—analysis of project feasibility studies, investment