FINANCIAL FEASIBILITY ANALYSIS OF FRESHWATER LOBSTER CULTIVATION (CASE STUDY: CILILIN, WEST BANDUNG DISTRICT)

FINANCIAL FEASIBILITY ANALYSIS

Abstract

Freshwater lobster cultivation is one of the business opportunities that has great potential in meeting domestic and international market demand. This study aims to analyze the financial feasibility of freshwater lobster cultivation in Cililin, West Bandung Regency. This analysis uses a quantitative descriptive method with Internal Rate of Return (IRR), Net Present Value (NPV), Break-Even Point (BEP), and Payback Period (PBP) analysis tools.The results of the study indicate that this business is very feasible to run. The IRR obtained is 3386%, far above the discount rate of 17% -18%, indicating significant potential returns. NPV is positive, each of IDR 5,991,695 at a 17% discount and IDR 5,636,373 at an 18% discount, indicating that this business is able to generate more income than the costs incurred after taking into account the time value of money. BEP is achieved at a sales volume of between 183 kg and 474 kg of lobster per year, depending on the year, with PBP achieved within 2.31 years. The conclusion of this study is that freshwater lobster cultivation is not only able to return capital quickly but also has significant profit potential. Therefore, it is recommended to continue this project with a flexible and responsive management strategy to market changes, as well as continuous financial monitoring to maintain business continuity.