FINANCIAL FEASIBILITY ANALYSIS OF BANHUAINAMKUAN ECOTOURISM BUSINESS IN CHIANG RAI PROVINCE

Abstract

This research aimed to analyze financial feasibility, and the sensitivity analysis of ecotourism business for Banhuainmkuan at Chiang Rai province by use of in-depth interviews. The results demonstrated that: (1) financial figures were current assets 20,000 Baht, fixed assets 2,300,000 Baht, revenues 1,083,000 Baht, costs and expenses 882,300 Baht; net profit 200,700 Bath. (2) Financial feasibility analysis of Ecotourism Business, the investment project was 5 years and the expected rate of return was 8%. The cash outflow for initial capital was 2,320,000 Baht, and cash inflow over 5 years were 518,700 Baht, 589,270 Baht, 666,897 Baht, 752,287 Baht, and 846,215 Baht, respectively. There were a Payback Period (PP) of 3.72 years, Net Present Value (NPV) of 323,759.31 Baht, Profitability index (PI) of 1.14, along with an Internal Rate of Return (IRR) of 12.73 %. The results showed that a investor in Banhuainmkuan ecotourism business could invest. The finally, sensitivity analysis were 1) total revenue decreasing more than 6.22%, other factors constant; 2) cost of goods sold increasing more than 25.45%, other factors constant; and 3) labor costs increasing more than 74.55%, other factors constant, making Banhuainamkuan ecotourism business unable to invest.