FINANCIAL FEASIBILITY STUDY OF AN INVESTMENT PROJECT IN ORGANIC INFLAMMATORY CREAM FOR HORSES OF A NEW ENTREPRENEUR IN LAMPHUN PROVINCE

Abstract

Financial feasibility study of an investment project in organic inflammatory cream for Horses of a new entrepreneur in Lamphun province, this research had three objectives: 1) to study general investment project information 2) to study the financial information of the investment project. 3) to evaluate the investment project in organic inflammatory cream for horses, and used in-depth interviews with 5 key informants in 2022. The result showed 3 parts: Part 1 General investment project information, a new entrepreneur was able to see a business opportunity in organic inflammation cream for horses. The sales channel was an online channel by pre-ordering at least 150 boxes. The selling price was 250 baht per box. This project investment was using hired a production factory which wage cost of 3,000 baht per time. Part 2 Financial information of this investment project, the financial projection at the beginning of the first year was an initial investment of 240,000 baht, and the financial projection at the end of the first year were 1) sales revenue of 375,000 baht, 2) product production costs of 284,000 baht production costs per unit of 189.33 baht, 3) sales and administrative expenses of 87,350 baht, and 4) net profit 3,650 baht. Part 3 Evaluation of investment projects, a project life of 5 years, and a required rate of return of 10%. The Initial cash outflow was 240,000 baht, and the year 1 to year 5 cash inflows had 47,650, 65,400, 83,300, 101,200, and 119,100 baht respectively, there were payback periods of 3.43 years, the net present value of 63,025 baht, a Profit index of 1.263, and the internal rate of return of 18.36%. Therefore, the results showed that the investment project can be investment.