Feasibility Analysis for Purchasing Machinery in the Machine-Rolled Clove Cigarettes Production
There are many assets that a company has. The assets consist of two aspects, current asset and fixed asset. One of the fixed assets is equipment, including the machine. The study was conducted in Cigarettes Company that produces many cigarettes product. One of the cigarettes products is Machine – Rolled Clove Cigarettes. The machine – rolled clove cigarettes had an increase demand. But, the company could not meet the demand. The main reason was the capacity of Hinge Lid Packer (HLP) machine. In order to meet the customers demand, the company planned to invest a new machine. The aim of this study was conducted to analyze which alternatives that have to be chosen for the investment. The decision analysis methods for this study were the payback period method and profitability index.
Keywords - Feasibility Analysis, Hinge Lid Packer Machine, Machine-Rolled Clove Cigarettes, Payback Period, Profitability Index.