Financial Feasibility Study of the Adventure Business Establishment

Main Article Content

Thatphong Awirothananon

Abstract

The objective of the study is to analyse the financial feasibility of the adventure business establishment. Depth interview is a study instrument to collect the data from one entrepreneur in Chiang Mai. The project life of the adventure business establishment is set at 10 years, as the lifetime of the fixed assets. A discount rate of eight percent is also set. The results show that the net present value (NPV) of the project is 349,294.51 Baht while the Benefit cost ratio (BCR) is 1.09 times. In addition, the internal rate of return (IRR) is 9.87% and the payback period (PB) is 6.25 years. This study further sets an analysis of the average inflation rate of 3.03%. The results show that the NPV of project is 217,510.89 Baht while the BCR is 1.05. In addition, the IRR is 9.17% and the PB is 6.44 years. Therefore, it can be concluded that the adventure business establishment in Chiang Mai is a worthwhile investment.


 

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How to Cite
Awirothananon, T. (2018). Financial Feasibility Study of the Adventure Business Establishment. Journal of Management Science Chiangrai Rajabhat University, 13(1), 92-107. Retrieved from https://www.tci-thaijo.org/index.php/jmscrru/article/view/128076
Section
Research Articles
Author Biography

Thatphong Awirothananon

Ph.D. (Accountingt, Finance and Economics) Griffith University, Australia, (2009). Currently a Assistant Professor in Finance, Faculty of Business Administration, Maejo University.

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