A Cost-Benefit and Sensitivity Analysis of Investment in Cannabis Craft Beer Product Production: A Case Study of the Project for the Promotion and Support of Cultivation, Production, Extraction, Research, Development, and Processing of Hemp and Medical Cannabis' between Rajamangala University of Technology Lanna and Bespoke Life Science Company Limited

Abstract

This research aimed to examine the costs and returns of an investment project for cannabis craft beer production, as well as to evaluate the project's feasibility and sensitivity.  A quantitative research approach was employed from April to September 2025. The research population consisted of eight researchers involved in the project titled A Study of Yield and Key Compounds of Imported Cannabis Strains under Controlled Environment Cultivation, conducted under a memorandum of understanding between Rajamangala University of Technology Lanna and Bespoke Life Science Limited.  The data were collected through in-depth interviews and subsequently analyzed quantitatively to address the research objectives.  The findings showed that: 1) the project required an initial investment of 83,000 baht. The production cost per unit was 73.60 baht and an annual production capacity of 2,592 bottles. At a selling price of 99 baht per bottle, the first year generated a revenue of 256,608 baht with a net profit of 40,176 baht. 2) Cash flow analysis, based on assumptions of 5% annual revenue growth and a 3% annual increase in cost, using a discount rate of 6.125%, indicates high project viability. The project yields a Net Present Value (NPV) of 475,147.17 THB, an Internal Rate of Return (IRR) of 69.95%, a Payback Period (PB) of 1 year, 6 months, and 25 days, and a Discounted Payback Period (DPB) of 1 year, 8 months, and 12 days. 3) Sensitivity analysis confirmed that the project can withstand moderate fluctuations in costs and revenues while still maintaining satisfactory returns. These results demonstrate that investment in cannabis craft beer production is economically feasible and suitable for future expansion. Moreover, the project can serve as a model for individuals or businesses interested in cannabis-based product ventures.