Cost and Sensitivity Analysis of Investment Project in Cleaning Service Business: Case Study of Me D Property Service Management Company Limited
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Abstract
This research aims to study the costs and sensitivity of 3 types of investment project in cleaning service business including small investment project (with 5 maids), moderate investment project (with 10 maids), and large investment project (with 15 maids). The results revealed that Net Present Value of small investment project, moderate investment project, and large investment project was 542,610.18 baht, 1,132,804.71 baht, and 1,549,759.49 baht, respectively. For project’s sensitivity analysis in the event that cost was increased by 5% and 10% while income was fixed and in the event that income was decreased by 5% and 10% while cost was fixed, it was found that cost changing decreased Net Present Value by 25.52% - 59.91%. In addition, income changing decreased Net Present Value by 33.47%-70.30%. It represented that investment project had higher level of sensitivity on income than sensitivity on cost. When comparing these projects, it was found that moderate investment project had the lowest level of sensitivity on cost and income.
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