Capital Investment Analysis for the Product of a Startup Company Case Study: Detection Program for Traffic Light Violations

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Published: Dec 25, 2022
Keywords:
Startup Payback Period Net Present Value Internal Rate of Return Capital Investment Analysis New Technology Product Development

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Piyada Daowadueng
Khon Kaen University
Jetsada Kumphong

Abstract

This research is an exploratory study to analyze cost-effectiveness of the investment for detection programs to monitor traffic light violations in Khon Kaen Province. A mixed method for data collection was employed in response to the research question. The case study was for the JP Intelligence System Engineering Co., Ltd, a technology startup that produced a controlling traffic violations program in Khon Kaen Province, and research data was collected by interviewing the director of the company and Khon Kaen Provincial Police Officers. The quantitative method with management accounting techniques used in analyzing the data consisted of the Payback Period, Net Present Value (NPV), and Internal Rate of Return (IRR). It was shown that with a 450,000-baht investment, the Payback Period would be a duration of two years, two months, and two days. The Net Present Value (NPV) was gauged at 750, 542.85 baht, greater than 0, indicating that this project can have a greater return on investment. Regarding the Internal Rate of Return (IRR), the findings show 48.88%, higher than the discount rate (6.60%). Accordingly, the investment was considered a profitable project since it provided a short payback time with a positive net present value and a high internal rate of return. Therefore, based on the cost-effectiveness analysis, the investment for detecting programs capable of reporting and investigating traffic violations has a greater financial advantage.

Article Details

How to Cite
Daowadueng, P., & Kumphong, J. . (2022). Capital Investment Analysis for the Product of a Startup Company Case Study: Detection Program for Traffic Light Violations. Journal of Management Science Chiangrai Rajabhat University, 17(2), 163–186. Retrieved from https://so03.tci-thaijo.org/index.php/jmscrru/article/view/260919
Issue
Vol. 17 No. 2 (2022): July - December, 2022
Section
Research Articles
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Author Biographies

Piyada Daowadueng, Khon Kaen University

Ph.D. (Applied Economics), University of Antwerp, Belgium (2019). Currently an Accounting lecturer in the Department of Accountancy, Faculty of Business Administration and Accountancy, Khon Kaen Business School, Khon Kaen University, Thailand.

Jetsada Kumphong

Ph.D. (Civil Engineering), Khon Kaen University, Thailand (2019). Currently a Lecturer at the Faculty of Technical Education, Rajamangala University of Technology Isan Khon Kaen Campus, Thailand.

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