| dc.description.abstract | As a plastic product manufacturing company, PT Maju Kaya Rejeki has a 5 liter
jerry can as one of its superior products, but still has a production line that is not
good enough. This is because they often produce with a lot of quality defects and
need to be recycled which makes a lot of time wasted and inefficient. In contrast to
competitors, which are superior and able to provide products at lower prices with
better production. Therefore it is necessary to make improvements to the production
line in order to increase production effectiveness which is better and superior to
competitors. One of them is by analyzing the feasibility of financial investments
using the Capital Budgeting method (Blank & Tarquin, 2017). Financial
calculations with Capital Budgeting in this study are to find out if the machine
investment plan is profitable or not. This method consists of Payback Period (PP),
Net Present Value (NPV), Profitability Index (PI), and Internal Rate of Return
(IRR). This method was carried out on printing presses for the production of 5 liter
jerry cans, by comparing the condition of the old machine and the new machine
aged 8 years, the results of the research on the scenario of replacing the new
machine with trade-in and the results of the calculation were 9 months PP, NPV
Rp. 2,366,922,828, PI Ratio 9.3, IRR 8%. Based on the criteria that have been
carried out in this study, it is concluded that investing in new machines is feasible
with a scenario of buying 1 new machine to replace 1 old machine with installment
payments with the aim of increasing production effectiveness and cost efficiency at
PT Maju Kaya Rejeki. | en_US |
