College - Author 1
College of Agriculture, Food and Environmental Sciences
Department - Author 1
Agribusiness Department
Degree Name - Author 1
BS in Agricultural Business
Date
12-2010
Primary Advisor
Xiaowei Cai, College of Agricultural, Food, and Environmental Sciences, Agribusiness Department
Abstract/Summary
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.
URL: https://digitalcommons.calpoly.edu/agbsp/56