FINANCIAL FEASIBILITY INVESTMENT PROPERTY SHOP DEVELOPMENT (CASE STUDY AT CEMPAKA PUTIH RUKO IN BECORA-DILI)

Abstract

This study aims to determine and analyze: The feasibility of investing in the property of the Cempaka
Putih shophouses in Becora, Dili, Timor Leste based on specific financial aspects, such as Net Present Value
(NPV), Payback Period (PP ), Internal Rate of Return (IRR) and Profitability Index (PI). The results of this study are
also expected to provide benefits for the feasibility of investing in shop property development based on economic
analysis from the financial aspect, namely Net Present Value (NPV), Payback Period (PP), Internal Rate of Return
(IRR) and Profitability Index (PI) and also expected to be references for further researchers.
The analysis technique in assessing the feasibility of investing in the Cempaka Putih shop-house property in
Becora, Dili, Timor Leste from a financial aspect is a Quantitative Descriptive Analysis, which uses the Payback
Period (PP) method, Net Present Value (NPV), Internal Rate of Return (IRR) and profitability. Index (PI).
The results showed that the property of the Ruko Cempaka Putih in Becora, Dili, Timor Leste was feasible from a
financial aspect by using the analytical calculation formulation Payback Period (PP) 9 years, 10 months and 10 days
smaller than the project life (20 years); NPV has a positive value of USD $ 556,734.62, the analysis of the amount of
IRR is 117.81% greater than the WACC of 10.8%, and the PI analysis is found to be 1.825%> 1 which means that it
is acceptable.
Keywords: Payback Period (PP), Net Present Value (NPV), Internal Rate of Return (IRR) and profitability Index
(PI).