Financial Feasibility of the Investment Projects for the Conservation and Development of Bangkok Railway Station (Hua Lamphong) Area
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This paper studies the financial feasibility of the conservation and development of the Bangkok Railway Station (Hua Lamphong). There are three prospect investment schemes which consist of 1) conservation-based development, 2) creative-economy-based development, and 3) commercial-based development. This paper uses the Discount Cash Flow model with an investment period of 30 years. Several results emerged. First, the conservation based development has a negative NPV of 3,261 million bahts with a payback period of 15 years. The creative- economy-based development has a positive NPV of 12,818 million bahts with a payback period of 7 years. Meanwhile, the commercial-based development has a positive NPV of 18,369 million bahts with a payback period of 6 years. Second, our sensitivity analysis shows that occupancy rate and pricing significantly determine the volatility of the projects' returns.
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