EVALUATION OF EXCAVATOR INVESTMENT COSTS IN BAUBAU PORT DEVELOPMENT PROJECT

Engineering

The government's program by increasing the capacity of the Baubau dock / port is in order to accelerate economic development and overcome the number of ships that are no longer able to accommodate loading and unloading of goods and passengers. Heavy equipment investment in port / dock development work certainly requires a large enough initial capital and a long time to return investment capital, so the research objective of this is to assess the feasibility of investment and the payback period. The decision to invest in heavy equipment in local government projects, in particular the work of constructing a new pier and upgrading the existing pier structure, requires in-depth analysis and studies using the Net Present Value (NPV) method and the Internal Rate of Return (IRR) and the Break Event Point (BEP) as a reference to determine whether a project is feasible or not and the payback period for investment. The conclusion from the results of this study is the excavator investment value of IDR. 1,450,000,000, - with a Net Present Value (NPV) of IDR. 4,282,331.62 is greater than zero (investment worthy) and the value of the Internal Rate of Return (IRR) is 7.07% greater than 7% (feasible for investment). Break event point (BEP) or the excavator investment payback period of 2,816 hours. The conclusion from the results of this study is the excavator investment value of IDR. 1,450,000,000, - with a Net Present Value (NPV) of IDR. 4,282,331.62 is greater than zero (investment worthy) and the value of the Internal Rate of Return (IRR) is 7.07% greater than 7% (feasible for investment). Break event point (BEP) or the excavator investment payback period of 2,816 hours. The conclusion from the results of this study is the excavator investment value of IDR. 1,450,000,000, - with a Net Present Value (NPV) of IDR. 4,282,331.62 is greater than zero (investment worthy) and the value of the Internal Rate of Return (IRR) is 7.07% greater than 7% (feasible for investment). Break event point (BEP) or the excavator investment payback period of 2,816 hours.

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