Date

12-2010

Degree Name

BS in Agricultural Business

Department

Agribusiness Department

Advisor(s)

Xiaowei Cai

Abstract

This study was conducted to determine if the palm oil processing plant with a capacity of thirty tons per hour is the optimal size for the Sutopo Lestari Jaya Company. This report represents two important techniques when performing the analysis. A net present value has been calculated in determining the feasibility of the palm oil processing plant in the next ten years after it is built. A break-even analysis has been performed to determine the number of units produced to cover the fixed cost after the processing plant operates.

It is concluded that the processing plant with a capacity of thirty tons per hour currently is the optimal size for the Sutopo Lestari Jaya Company. This conclusion is based on the investment analyses that provide a net present value of $82,687,352 in ten years period and break-even point at 1,000 units.