Financial Feasibility Analysis of Red Chili Pepper Seedling at Karanganyar, Poncokusumo, Malang

This research aims to analyse financial feasibility of
red chili peppers (Capsicum annum L.) seedling business conducted
at Karanganyar, Poncokusumo, Malang. The respondents were
farmers who breed red chili peppers and the data collected from
March to April 2018. The primary data was collected through
interviews based on structure questionnaire to obtain information
from selected farmers in the study area. The qualitative study is
utilized to analyse the financial feasibility based from Net Present
Value (NPV), Internal Rate of Return (IRR), Net Benefit-Cost Ratio
(BCR), and Payback Period (PP). This study findings showed a
positive NPV (IDR 15403419), IRR is 23.19%, Gross B/C is 1.05,
Nett B/C is 1.13, BCR > 1 (1.05), and PP as 19 months. Despite the
costly investment and development, the red chili peppers seedling
business is financially feasible.