A STUDY OF THE FINANCIAL FEASIBILITY OF INVESTING IN THE CONSTRUCTION OF A PRODUCT PROCESSING FACILITY FOR KHON HUA JAI IN-SI BAAN NAM SUB PHATTHANA COMMUNITY ENTERPRISE, PHATTHANA NIKHOM DISTRICT, LOPBURI PROVINCE

Main Article Content

Nantana Jaengsawang
Sirilada Srikok
Sasitorn Wachirapanyapong

Abstract

This research aimed to study the financial feasibility of investing in the construction of a product processing facility for Khon Hua Jai In-Si Baan Nam Sub Phatthana Community Enterprise, Phatthana Nikhom District, Lopburi Province. The sample consisted of three community enterprise leaders and members. Data collection using a validated interview instrument had an IOC between 0.67 to 1.00 and analyzed using financial tools to assess investment feasibility, including payback period (PB), net present value (NPV), profitability index (PI), and internal rate of return (IRR).


The research results found that the payback period (PB) was 1 year, 9 months, and 25 days, indicating a faster payback than the project's 5-year lifespan. The net present value (NPV) was 169,781.68 baht, which is greater than zero, indicating a higher rate of return than the cost of capital. The profit index (PI) was 1.34, which is greater than 1, indicating a decision to invest in a product processing greenhouse. The internal rate of return (IRR) was 47 percent, which is greater than the required rate of return or cost of capital. This shows that it is appropriate to decide to invest in the construction of a product processing facility. The Khon Hua Jai In-Si Baan Nam Sub Phatthana Community Enterprise, Phatthana Nikhom District, Lopburi Province, should decide to invest in the construction of a product processing facility because it can pay back the investment quickly and the return on investment is higher than desired.

Article Details

Section
Research Article

References

Chinpaisal, T. (2023). Financial management. Thanatut Printing Co., Ltd.

Food Division. (2023). Manual for food product licensing. Food and Drug Administration.

Ministry of Public Health. (2021, February 9). Notification of the Ministry of Public Health (No. 420) B.E. 2563 (2020) issued under the Food Act B.E. 2522 (1979): Methods of production, production tools, and food storage. Royal Thai Government Gazette, 138(Special Part 31 Ng), 24–26.

Sirirotjanaput, W., Sasiwimonrit, K., & Thanaviwat, N. (2018). A Financial Feasibility Study of Investment in Rice Mill: A Case Study of a Rai Makham Community Enterprise, Ban Lat District, Phetchaburi Province. Journal of Economics and Management Strategy, 5(1), 39–49.

Sodawang, T., Kiatpathomchai, S., & Thongrak, S. (2022). Financial Analysis of Melon Production in Lower Southern Region of Thailand. Economics and Business Administration Journal, Thaksin University, 14(1), 43–62.

Trade Policy and Strategy Office. (2024). Guidelines for the promotion of OTOP products. Trade Policy and Strategy Office, Ministry of Commerce.

Udcharchon, S. (2021). Economic feasibility analysis and risk analysis for waste to energy power plant projects investment in Phichit Province. [Master’s thesis Unpublish]. Naresuan University.