Cost Benefit Analysis and Sensitivity of Investment Project of Coffee Products in Nan Province

Abstract

The objectives of this research are to study coffee production of Nan Farmer Group, Changwat Nan, and to analyze cost and financial return on drip coffee product investment of Nan Farmer Groups. By collecting data from the coffee production business entrepreneurs by in-depth interviews with10 informants.  Bring data from interviews, make financial reports on costs or expenses and revenue of the business include a sensitivity analysis of the project in 2 various cases: the case costs increase by 10% while income constant and the case income decrease by 10% while costs constant.

The results showed that the structure of investment initial investment funds 550,190 Baht. Cost of sale in first year 518,104 Baht, project income in the first year 886,080 Baht, the net present value (NPV) was 3,677,574.37 baht Discount rate 6.875%. The benefit-cost ratio (B-C ratio) was 1.62, meanwhile, the internal rate of return (IRR) was 76%, the payback period (PB) is 1 years 5 months and a sensitivity analysis of the project in 2 various cases: the case costs increase by 10% while income constant, it was found that the value is positive 3,138,218.67 Baht. The case income decreases by 10% while costs constant, it was found that the value is positive 2,715,442.23 Baht. Therefore accept the project.  The switching value tests of benefit and cost (SVTB and SVTC) were 38.22 and 61.87.