Land Management Project Analysis in Baan Huai Sai Community, Mae Pang Subdistrict, Phrao District, Chiang Mai Province

Abstract

This research article aimed at analyzing the Business Land Management Model (BMC) and conducting financial analysis of the land management project in Baan Huai Sai Community, Mae Pang Subdistrict, Phrao District, Chiang Mai Province. This research used primary data from in-depth interviews with entrepreneurs and those involved in land development activities by collecting data on investment costs, income and related expenses. Also, the study used secondary data from academic documents, reports and articles. The study analyzed four key issues including business model through Business Model Canvas, Project Investment Analysis, Sensitivity Analysis and Switching Test. It was found that the project consisted of a total area of 380 rai, divided into 4 parts agricultural tourism garden (area approximately 161 rai), activity area (area approximately 68 rai), tent area - pitching tents and carbon credits (area approximately 93 rai), and rental and sales area (area approximately 58 rai). Each of these parts had been proposed to arrange in different business formats according to the nature of land management, namely agricultural tourism garden, activity area, tent area - pitching tents and carbon credits, and rental and sales area, respectively. The results of the study found that the financial investment of the land management project of all areas in the project were feasible indicated by The net present value (NPV) of 109,440,687.78 baht, benefit to cost ratio of the project (BCR) of 1.57, and Internal Rate of Return (IRR) of 14.98 percent Furthermore, the discounted payback period (DBP) was equal to 7.24 (7 years 3 months). The sensitivity analysis results showed that the project remains worthwhile investing. Switching Value Test of Cost was equal to 56.98 percent and Switching Value Test of Benefit is equal to 36.30 percent, it can be concluded that this was a project worth investing in.