Financial Feasibility Study of the Adventure Business Establishment
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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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