Cost and Sensitivity Analysis of Herbal Inhaler Investment Project : A Case Study of Chadatong Herbal Inhaler, Wabellas Community Enterprise Group
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Abstract
This research aimed to study the cost and analyze the sensitivity of herbal inhaler investment projects, a case study of the Herbal Inhaler of the Wabellas Community Enterprise Group. The population was community enterprises of herbal products for health and beauty in Taphanhin District, Phichit Province. The samples were selected by a purposive sampling method. Data were collected by in-depth interviews. The data was taken to prepare a report on the cost and income of the business to assess the Payback Period, Net Present Value and analyze the sensitivity. The results showed that the investment project requires an initial investment of 255,400 baht. The Payback Period of 2.63 years and when calculating the present value of cash flows using the Weighted Average Cost of Capital as a discount rate of 15.50%, the investment project has a Net Present Value of 834,088.39 baht, meaning that the total present value of cash inflows was greater than the initial investment. Therefore, the project was accepted. In terms of analyzing the sensitivity of the project when cost and income factors changed, it was found that the costs increased by 10% and 20% with the fixed income, causing the net present value to decrease to 720,472.67 baht and 606,856.96 baht, respectively. However, if the income decreased by 10% and 20% with the fixed cost, the net present value would decrease to 611,523.84 baht and 388,959.28 baht, respectively, indicating that the investment project was more sensitive to income than cost.
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