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.

Included in

Agribusiness Commons

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