| The aimed of this research is to analyze whether the Liquefied Petroleum Gas unit project which is built at PT.ABC compound using raw material comes from the wastage gas that are normally flared from PT ABC is feasible acceptable to investors, including the sensitivity analysis which is changes in the LPG pricing. The analysis is using data such as LPG Production Capacity, General and Administrative Costs, Internal Rate of Return offered to investors (limited to maximum of 19.75%), the cash flow forecasting of this project is generated to the 15 years onwards. The Result of this cash flow analysis indicate that the return on capital can be completed within a period of 2.51 years using payback period method, resulting NPV equal to zero due to the limitations of IRR. Sensitivity analysis of this project was done by using the country risk analysis from Aswath Damoran to determine the interest discount factor (Country risk + LIBOR) amounting to 5.5% on the assumption of the analysis of this data can be generated that can be done rate return of capital during the 2.51 year, the Internal Rate of return of 19.75% and the resulting NPV is USD 33,806,541.97. We also analyze pricing sensitivity, if the price of LPG has increased or decreased by 10% from projected by Muse Stancil. Based on the sensitivity analysis, we found that the level of LPG price sensitivity towards the feasibility of this project is if the price drops to 10% of the projected IRR generated less than 19.75%. Based on the results of the cash flow analysis and comparing with similar Expected IRR of the project, we can conclude that the Liquefied Petroleum Gas project built on the complex PT. ABC by using the flaring gas of PT. ABC is feasible to the investors. From the analysis we gives some suggestions of alternative development in order to improve and increase our collective knowledge in studying the feasibility of such analysis, development feasibility study for LPG filling station. |